In 2008, Ford Motor Company decided to lever up their company right before the devastating financial crisis in our country. As a result, they not only survived, they thrived while their competitors struggled.
Not sure where this year will take us? Prepare for boom and bust. Just as you close out your books for year–end, have your banker take a hard look at what you have and prepare and see what you can leverage. While times are still good, with rates historically low and with the Federal Reserve threatening to raise rates more than once this year, there is no better time to make that assessment when you are getting ready to file taxes anyway. Having a line of credit as a safety net when there is less predictability could mean that you could snatch up a deal or avoid alienating one of your vendors.
#2 Take Advantage of the Tax Code now.
Radical changes to the tax code are being promised by the new administration which could impact a decision postponed to next year. If you think you need that new truck next year – think about getting it now.
#3 Diversify Revenue Sources and Stay Nimble
Doing what you do best is how you got there, but making sure that you have a healthy diversity of customers and staffing is not too dependent on any one client or contract, is always wise. Exploring avenues for revenue growth, either organically or by acquire a small competitor could be very timely this year. Acquisition benefits could include taking on skilled employees that are using newer or more efficient ways of doing business as well as getting new insights to your business that would otherwise enhance your current staff.
Whether you are a seasoned business owner looking at constructing a new location, or new business looking to navigate an uncertain year, this year in particular, going in prepared could mean the difference of a good year and great year.