Music Gro: Growing Creatives

Business Check-up

If you have not been paying attention to the business and financial markets lately, you might want to tune in. The chatter across many different business social sites, the business reports, and information coming from the US Treasury, international banks, market forecasters, and experts in investing are revealing similar themes: increasing inflation, probable economic downturns, and more consequences from severed ties in global manufacturing deals, debt structures, and tech are all concerns. While I am not a ‘prepper’ who operates out of fear, I do believe in being prepared for things that will inevitably come along. It’s why I have business insurance. But there is much more I can do to be responsible for keeping my business healthy and safeguarded against potential crises.

The Global Pandemic and lockdowns of 2020 should have taught us some lessons about liquidity, savings, ability to pivot or shift, having back-up plans in place and more. While I am not a financial expert and will not give financial or investment advice, I will offer some questions we should all be asking ourselves, and discussing with our financial advisors about our businesses.

  • How much of my assets should be liquid and accessible in a ‘normal’ economy? How much of my assets should be liquid and accessible in a volatile economy or recession?
  • How much business savings do I need?
  • Do I have diversified assets?
  • What global and/or local events impact my business? How can I minimize those impacts?
  • When my business is impacted, what are the best ways to communicate with my clients?
  • How do economic shifts affect my clients? What are the best ways to communicate with my clients when they experience economic difficulties?
  • How can I better prepare my business for economic shifts? Changes in infrastructure? Changes in tools or equipment available to me or my clients?
  • What other things should I consider with regard to keeping my business healthy?

This is not an exhaustive list, but it should help us get on the right path toward healthy, sustainable business plans. I am sure some of the predictions being made right now will not come true. But I would rather be prepared (at least to some degree) than be caught completely unaware.

What would you add to this list of questions?

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