Can you continue growing your business through the downturn? It would be great to be able to predict what’s going to happen in the economy next week, next month, and next year. But when it comes doesn’t matter—the fact remains that at some point, there will be a downturn in the economy.

The real-time, first party data shows margin compression at the top of 2023, especially in certain industries. Sales targets are starting to be missed, which is another sign of what could be coming. What can business owners do to manage this situation? You could panic, you could stick your head in the sand, or you could realize some of the most amazing companies were started or flourished in past recessions.

This is the perfect time to reflect on what your customers need and how you can serve them better. You may need to pivot or welcome a new perspective based on the economic strain on your customers. This is an opportunity to innovate, reinvent yourself, and make your community even stronger.

In any given downturn, there is going to be room for nuance. But generally, there are some main factors to consider during these times no matter what. One factor is interest rates, which are still low to moderate according to modern standards. What’s unique about this downturn is the unprecedented period of time of low interest rates and money supply over the last decade.

Consumers and business people who haven’t experienced this before have a knee-jerk reaction of shock. The differing interest rate environments change the perception of costs for consumers. When society begins to push the rate down, human nature takes over and we have a tendency to consume more. More of this topic will be unpacked and explored over the next few episodes.