Small businesses can be just as volatile as the stock market, but these steps may help your company weather the ups and downs.
A wild ride on Wall Street may seem alarming. But the stock market’s ups and downs may be no different than what happens when you run your own business. It might not occur in the space of a week’s time, but small businesses may experience economic ups and downs on a regular basis.
“No business is immune to the fickle and unpredictable nature of a competitive marketplace,” says speaker and strategic consultant, Tom Panaggio, author of The Risk Advantage: Embracing the Entrepreneur’s Unexpected Edge. “All business climates are made up of a series of connected cycles, both positive and negative, that business leaders must accept as a risk and a cost for the opportunity to follow their entrepreneurial dreams.”
Tom Wheelwright agrees. “I have never seen any business that didn’t have ups and downs,” says the author of Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes and CEO of ProVision Wealth Strategists. “The stock market and economy in general affect all small businesses, because it causes customers to either hold on to their money or spend.”
While the overall economy may create some cyclical exposure for small businesses, most owners may be more in control of their destinies than they think, says De’Andre Salter, CEO of Professional Risk Solutions and author of Seven Wealth Building Secrets: Your Guide to Money and Meaning.
Never stop looking for ways to implement change, especially during tough times. When things get rough, weak competitors will go into hibernation, and this is when creative business leaders make their moves.
–Tom Panaggio, strategic consultant, author of The Risk Advantage