Risky Business

2016-05-24

When the economy is going well and your business is humming, all seems good. But what happens, if there is a downturn? Is your business ready? Are you?

 

What can you do before the downturn hits or signs show it is coming?

""
  1. Don’t panic – reactive moves generally only focus on the short-term immediate situation and usually does not consider the other ramifications.
  2. Sit down with your financial advisors and review your current financial information. Ask how you are trending not only to previous years but to the industry. You need to know! It will result in answering the following questions:
  3. Are your margins acceptable?
  4. Are you properly staffed or do you have excess capacity?
  5. Are your sales where you need them to be? Do you have the right client mix? No one likes to say no to a sale but sometimes it is the most profitable thing to do.
  6. Review all your expenses even the ones you think are insignificant. It is the time to review your staffing needs and do you have the proper people.
  7. Do you need to adjust your methodologies? Are they still the most effective or are you just doing it the same way because you always have.

In a downturn economy, even more importantly, in an upturn one, it is always prudent to take stock in where you are and where you need to go.

Prevention is much better than a just reaction.

Latest Blog Posts

2025-10-21

How we helped a client decide between a consumer proposal and bankruptcy

Leah Drewcock

A client thought bankruptcy was their only way out. See how a consumer proposal helped them keep their home and repay debt with confidence.

Read More

2025-10-20

Seniors and Debt

Pamela Meger

Alternatives to Bankruptcy Bankruptcy Consumer Proposal Lifestyle Debt MNP Consumer Debt Index

Just when seniors should be relaxing and enjoying the fruits of their labour, many find themselves struggling financially — an unsettling contrast to the ease they’d hoped to live their golden years.

Read More

2025-10-17

How buyer’s remorse laws can help you stay out of debt

Alana Orrell

This is called buyer’s remorse. In some cases, Canadian law provides protections that can help you reverse these costly decisions and avoid sinking further into debt. 

Read More

Consultation icon