Many of you know I’m a recreational pilot proudly holding a license since 1979 and with the emphasis on “recreational”, I fly on severe clear days: No clouds for me! Now the joke in flying is any landing you walk away from is a good landing…and I disagree: I’ve always worked hard to let the wheels of my Piper Cherokee gently kiss the runway vs. one of those that rattles your teeth so hard you need to go to the dentist. Trust me, on a windy day it isn’t easy.
Well, our economy locally, regionally, nationally and globally is in more than just a summer breeze – it’s windy out there with lots of storms including Ukraine and Venezuela; the 10 Year T-Bill wafting from a low of 3.78% just last week to a high of 4.70% on April 25 – a change of over 24%, (imagine the national US mortgage payment average of $2,833 changing to $3,547); and, then throw in the huffing and puffing on both sides of the election and I’d call it a Class 3 hurricane!
Then we have the pundits just today calling for a big increase in the odds of a recession. Yup, it’s enough to keep someone up at night! While my attempts at a Zenlike approach to life are hit or miss, I do get on base more often than not by staying the course of my own family, personal goals and business plan and since this is a business centric blog, there are few key bullet points:
- Plan, Review and Plan Again…and again…and again!
- Find a business planning tool you like and make it a living document with a few key metrics that work for you. Mine begins with revenue and expenses so if you’re a government that’s starting with taxes and if you’re a business, that sales. Depending on your resources, this can be as simple or as complex as you like but remember: “No one plans to fail, they just fail to plan”
- You cannot see the future but you can “think” about it!
- Pick your favorite business publication and read it and pluck a few basic key facts you believe will impact you: If you’re a school district, that new subdivision in your district is sure to mean more kiddos and more taxes and if you’re a business in that same district, those taxes mean you. Those are local views and the global ones are things like your state is requiring you to get clean school buses…can you get ‘em from the manufacturer or even more local, can you get charging. And back to the businesses in that same district, will your electric rates change because the school needs more power?
- Get to know your banker
- Most of us try and go to the dentist for a cleaning and check-up 2x per year – preventative medicine. Well, you don’t want to have to borrow money from your banker in an emergency if you haven’t been proactive in keeping them informed about your city, county, school or local office, manufacturer or retail business. It’s simple really, share your quarterly financial statements at lunch and get ahead of the curve. Remember, you’d rather get those teeth cleaned than have to drill for a filling!
Have a great end of summer friends and if you ever have any questions, I’m at davidc@saulhill.com Thanks for reading!
