Batten Down the Hatches
As our clients already know, we are living in times of unprecedented economic uncertainty. As of this date, several major corporations have either withdrawn financial guidance for the balance of the year, or they have provided alternative projections based upon various assumptions.
For most businesses, planning is exceptionally challenging this year. Even the best skilled management teams cannot remove the uncertainty. However, there are strategies that can be implemented to mitigate the risk and position businesses to be better prepared for the opportunities that can arise in times of economic chaos.
If the tariff’s lead to strong headwinds and turbulent waters, businesses that are ill prepared to weather the storm may find themself adrift, or even worse – taking on water and sinking. We all hope that the ominous dark clouds will pass without too rough of a storm. Hope is fine, but hope is not a plan. Sailors, shorten (reduce) sails and batten down the hatches when they see dark clouds – before a full gale storm hits.
Similarly, businesses leaders can take steps to prepare for difficult economic conditions.
Shore Up Working Capital
During times of economic chaos, adequate working capital is critical. Getting new lines of credit after the onset of an economic storm can range from difficult and expensive to impossible. Obtaining working capital before an economic storm is always easier and less expensive.
If your business were to suffer a punishing quarter or two, having sufficient working capital could provide the cushion you need to maintain your employees and critical vendors.
Should the situations present themselves, ready access to working capital could be critical to opportunistic acquisitions for growth.
Our senior attorneys have been helping guide business leaders through economic cycles for almost four decades. That experience tells us that those who take the time now to prepare, will be the most likely to survive and even prosper from economic turbulence.
If you are not sure where to start, Alderman & Alderman is here to help.
