The storm on the horizon27th March 2019
The headlines have been completely dominated by the B-word…
…So you may have missed this potentially explosive news story, earlier this week.
“FTSE 100 struggles as recession fears stalk global markets,” read the headline.
Inside, the news was grim.
The Eurozone economy is slowing.
Germany’s economy, which powers much of the continent, is predicted to grow by just 0.6% this year – weak by historic standards. Italy’s economy is completely stagnant, with 0% growth predicted.
Across the pond, the Federal Reserve warned that American growth would be worse than expected.
A classic indicator that a recession is coming (an inverted bond yield curve, in case you’re wondering) appeared for the first time in over a decade.
And most concerning, in January China announced that its official economic growth was 6.6 percent in 2018. While this may sound fantastic to Western ears, this was the slowest pace since 1990, and is projected to be 6.2 per cent for 2019.
Are we on the verge of a global financial crisis?
If we are, then most people locally haven’t noticed. I wasn’t joking when I said you may have missed this story because of Brexit.
We have, collectively, been so focused on the economic implications of our departure from the EU, that we have taken our eye off the wider picture.
If you run your own business, you can’t afford to do that.
Now, you might feel that this doesn’t really apply to you - your business is on safe ground right now.
For all the talk of Brexit, most companies have not felt a pinch quite yet. And you might feel you are never going to. After all, 88% of British businesses do not trade with Europe.
Your sales might be healthy. Your turnover is, hopefully, on the upswing.
But I can’t help but remember 2008, when the economic grounds shifted seemingly overnight.
In just 3 long weeks, the banking system collapsed. Most people were taken by complete surprise.
And over the next couple of years, many seemingly strong businesses collapsed completely – from Lehman Brothers down.
Fortunes were lost. Livelihoods disappeared. And lives, unfortunately, were ruined.
What those business owners would have given to have some warning of the storm that was about to hit them……..
To be able to double-check that their financial foundations were firm….
And to be able to fix problems with their business ahead of time, so that when the storm hit, they were prepared - not vulnerable.
Those business owners would have been spared so much heartache.
This time round, we have warning.
Whatever happens with Brexit, we are entering a period of profound economic uncertainty. The signs that a recession is on the way are becoming clearer.
It would be foolish not to prepare.
Use this time, when the waters are still relatively still, to ensure that your business finances are in order, so that if you enter a period of difficulty, you can withstand it.
Ensure you understand exactly how strong your financial position is – and where your weaknesses are.
Taking this action right now may prove the difference between your business surviving and even thriving during the upcoming recession…..
…And the next few years being some of the most stressful times of your life.
So don’t wait until it is too late.
We can assess the financial health of your business, uncovering issues you may not even be aware of.
Then we’ll put together a plan, to fix the problems.
And if and when the next recession does hit, you will be ready for it.