Navigating Cycles

Taxes and death are considered the two certainties of life. Let me add a third one: Cycles.

 Know this about cycles:

1. Cycles are a certainty in business and in life. Know it, accept it and deal with it.

2. You will not know the length and pitch of the up or down cycles until it's over. 

So what can you do to navigate the cycles of your life, particularly the troughs?

Estimate what the worst case could be, then double it. And like the squirrel who stores nuts away for long winters, store away resources that will allow you to sustain and survive the recurring lows in your life or business cycle.

Why, you may ask, should you bother? You are right, you don't have to. Unless your tolerance for pain and scarcity in your life is low. I imagine most of us don't want to deal with that situation.

If you're running a business, it means having a balance sheet that will allow your business to survive while you navigate choppy waters. It means having cash in the bank to provide the oxygen that will keep your business alive. Evaluate what is and isn’t necessary for the survival of your business so you can make appropriate changes and provide a longer runway to your business. Hold on to as much talent as you can possibly can – when you come out of the trough, that talent will be key to how effectively you come back. And once you figure these things out, act fast on those decisions.

When you are addressing the cycles of your life, it is not much different. Having a cash cushion to carry you through the longest trough you can anticipate will be nice, if not imperative. In times like these, when physical survival is sometimes brought into question, being prepared is key. And no, that doesn’t mean hoarding toilet paper! Rather, it means being rational when stocking the resources and supplies needed to carry on. Having a circle of friends and family who will provide you that much-needed support is vital, since it becomes virtually impossible for most people to fight all those battles on their own. Facing these cyclical lows is not just about padding your financial bank account, but your emotional bank account too.

As we face some very choppy times ahead of us, it’s important to remember a few things – keep a cool head, cut out the noise, and focus on the essentials. You will be ready when the cycle turns up again, as it always does.

There, I wrote this article without once mentioning “Coronavirus”.

Please post your ideas, tips and hacks in the comments section below for getting through the inevitable troughs of work, business and personal life.