The past several years have been filled with chaos and economic uncertainties. Supply chain disruptions, small business closures, the great resignation, rising inflation rates, and geopolitical concerns have all directed economists to declare that a global recession is coming. According to recent studies, a staggering 70% of chief economists agree that an economic downturn is right around the corner. Within this expert panel, it seems as “if” a recession will occur isn’t the area for debate, but more so a matter of “when”. The general consensus is that the turmoil that began with the Covid-19 pandemic will finally rise to a head and result in a recession as soon as 2023. For more than 35 years, ASTA-USA Translation Services, Inc.’s Founder and President, Alain J. Roy, has curated language services for businesses of all sizes across a plethora of industries. Whether these clients translate business documents or require over-the-phone language interpretation as part of a larger expansion, Mr. Roy has witnessed firsthand what it takes for businesses to not only survive—but thrive—in times of economic strain.
While initial reactions may lead business owners to cut expenses and reduce their labor or operational costs, Mr. Roy advises leaders to take a different approach. Most companies aim to mitigate their most significant financial risks through mass layoffs and cost-cutting efforts, but the successful ones instead focus on growing the top line. This can be done through methods like expanding to new foreign markets. Over the years, Mr. Roy has helped translate business documents for countless clients undertaking such market expansions and they have used these methods to avoid the repercussions of recessions in the past.
There is no definitive, one-size-fits-all guide to navigating your way through a recession as a business owner. However, it is important to remember that a recession is not a short-term event. It is likely to last several months or even years. While this can be daunting, it is crucial to review and analyze your business’s financial statements while also aiming to understand changes in market trends or customer behaviors. Cutting employees or reducing overall production might make an initial difference, but it can be hard to recuperate from this long term. Expanding to new international markets and focusing on growing the top of the line; however, can generate additional profit that benefits a company for many decades to come.
Read the full story to learn more about successfully navigating economic downturns as a business leader.