SUCCESS REQUIRES CONSTANT ADAPTATION
Your performance in 2019 will depend on your own strategic initiatives as the economy turns downward. If you have been reading ITR Economics articles during the last year, you have gotten a head start on planning for the business-cycle decline taking root for 2019. We have been advising clients toward more conservative decisions in preparation for the year ahead: Avoid linear budgeting, build up cash balances, avoid overexpansion, and build up a backlog to keep yourself busy during decline. We stand by this advice. We also suggest that you use the slowdown later in the year to prepare for the next period of business-cycle rise, expected around mid-2020. This could mean training up employees, upgrading processes, developing new products, or planning a move into a new market.Most importantly, as decline becomes more pronounced, remember to lead with optimism to help motivate your team. Decline will be temporary, and rise will likely resume next year.