Embracing Economic Change: How to Future-Proof Your Business with Contingency Plans

By now, you have probably noticed changes in the economy.

The big question is, have you made adjustments in your business or investments? Do you have contingency plans?

One of the most important factors of a successful business is predictability.

It’s not sexy. It’s not fancy.

But, investors get spooked when there is uncertainty – and for good reason.

If you have no idea whether your market is going to increase or decrease, how do you plan?

Do you hire more employees? Do you expand locations?

Or, do you start selling investments?

If you don’t know what to expect, those can be very difficult and expensive decisions.

We often have multiple back-up plans and exit strategies in our business.

Sometimes we have to do a pivot in our strategy based on the economy and market trends.

We pivoted years ago when we saw the real estate market becoming overheated. People scoffed at the need at that time. Regardless, we were ready to ride through a downturn.

We pivoted again last year when interest rates started increasing quickly.

Many investors have stopped buying multifamily real estate. Not us, because of our pivot.

Sometimes, the unexpected happens and we have to quickly develop back-up plans.

We certainly did not have plans for a pandemic in our business plan. We do now.

If you start seeing an economy with heavy job losses, are you prepared for that? Do you have back-up plans?

Now is the best time to have contingency plans. Maybe it’s a good time to pivot in your strategy.

A little planning now will help you continue to have stable, predictable business.

Happy Investing!