Is 2023 something to fear, or something to look forward to?

There is a lot of chatter about an impending recession in 2023 so the question then becomes: What can I do to recession proof my business?

I wonder how many business owners and leadership teams are actually asking themselves this question and how many are 'hoping" that everything will be okay? I am sure that if I did a poll, almost everyone would say that they are asking the question, so my follow up would be: "Great, and what actions are you taking?"

According to data from the Bureau of Labor Statistics, approximately 70% of small businesses may fail by their tenth year of operation. This statistic is an alarmingly high number, and small business owners need to be aware of the signs that their business is in trouble.

Leading economists are saying that the retail industry is among the industries most affected by recession in 2023. If retailers don’t start building recession-proof strategies early on, they may be forced to shut down their operations.?

The impending recession will see a massive change in consumer spending. The majority of customers will save and cut their budgets for discretionary purchases. This means retailers who sell non-essential goods will be significantly impacted.

It is also thought that the retail industry’s labor issues will persist in the coming year.?According to the Washington Post , roughly 70% of job openings in retail are unfilled and this will likely continue until at least early 2023.

My own research has shown me that there are some challenges that are outside of the business owners control, and others that are 100% within their control. Too many leaders spend time concerned with the things that are out of their control and live in a blame culture where they accept the inevitable. Before you reply that I am being harsh and unfair, take a look at posts on social media plus news stories, then read this article again.

When we concentrate our time on the things that are outside of our control, the net result is stress. Not only for us, as leaders, but for the employees and this bleeds over to your customers too, creating doubt in their mind which consequently leads them to compare other sources.

However, when we dedicate the majority of our time focusing on what we can control, then taking intentional action, it leads to a renewed company culture, leadership excellence, employee engagement, increased customer satisfaction, and an increased confidence that our business is the one to partner with. This is a WIN-WIN!

Sounds simple, you may say, so what is the catch?

The only catch is that this takes work, there is no quick fix or "done for you" solution. There is a common thread between all the things that are within your control, and it is one word - People.

Leadership

John Maxwell says: "Everything rises and falls on Leadership." This is, without doubt, 100% correct. You will have seen and heard the saying that people don't leave organizations, they leave bad leaders (more likely Managers). So the first thing within your control is your leadership structure.

Employees

The second element within your control, is your employees. How are you treating them? Do you listen to understand what they are thinking and feeling, or do you listen to respond with why you cannot give them what they are asking for? Do you invest time and money in their development? Do your employees "want" to come to work, or do they feel that they "have" to come to work?

Customers

Without customers you don't have a business so the same questions I asked about your employees above, also apply to your customers. Are you creating an enjoyable experience for them that leaves them with a sense that they are special? The goal is to create an interaction, rather than merely a transaction. A lot of costs in your business may be outside your control, such as electricity, rent, and interests rates, but one thing that you can control is the cost of customer acquisition. The key is to create loyal customers who have a high intent to return and recommend you business.

You

The last "people" element that is within your control, is YOU. What are you doing to develop yourself as a leader and/or business owner? What are you doing to create an organizational culture of leadership and excellence that EVERYONE within your company understands, buys into, and lives every day?

2023 really can be the best year ever, all you need to do is take time to review where your business is now, where you want to take it, and then create a plan of action to make it a reality. If you want help, we offer a profit acceleration assessment that takes an hour to complete and provides you with a comprehensive report showing where the current gaps and opportunities are in your business.

We want to gift this to 10 companies so if you are interested, go to our website where you can watch a webinar on the 5-shifts to increase your bottom-line profit by 6-figures, and if you like what you see you can book your free assessment call.

I hope you look at 2023 with a positive outlook so that we can work together as business leaders to recession proof our businesses.