More than enough reasons for entrepreneurs to slam on the brakes. Cut costs where possible, stop unfilled vacancies and cancel all planned investments. Then hope that the crisis will be short and not too severe, so that the damage to the company is still somewhat limited. That is the logical reaction to an expected recession.
Get a head start right now
But as they say, 'only dead fish go with the flow'. As an entrepreneur, you can also try to take advantage of a crisis. Prices are likely to start falling due to lower demand. This has a negative impact for the business at the marketing end, but still offers opportunities. This may therefore be precisely the time to invest in new markets or even new machinery, a new ICT environment or a new warehouse. When prices start to fall, making an investment can be interesting. It creates a better negotiating position for the investing party and the lower price of the investment offsets the higher interest costs. But more importantly, by opting for a higher gear now, you as an entrepreneur may well gain a significant advantage over your direct competitors who do slow down. You will therefore be strategically stronger in the market when it picks up again.
Need more capital?
Tapping new markets or investing in fixed assets often has implications for company financing. For instance, the need for additional working capital financing may arise because of the need to invest more in inventory or because foreign buyers are slower to pay. But the need for leasing or a mortgage loan may also arise. For the entrepreneur who chooses to take that important step forward, the professionals at Xolv Finance are happy to arrange the best possible financing.
Interested? Then get in touch to arrange a no-obligation introductory meeting
