Recession or no recession?
Interest rate increases?
Bank failures?
Delivery challenges and increased supply prices?
Global tensions, energy concerns…
There is so much uncertainty in the world right now and in the current business environment that it can be challenging to plan for the future.
Most people tend to pick one of three responses when faced with fearful or uncertain situations. They either choose to fight through it, flee away from it or freeze – do nothing and wait for the crisis to pass on its own.
Each response has its pros and cons when it comes to business ownership…
Fighting through a situation like we are currently experiencing is a good option to consider, as long as you have the energy and commitment to push for a couple more years to get your business successfully through the downturn and make it to the other side.
Flight is also a good option, if your personal situation does not allow you the time or energy to commit to your business to get through this uncertainty and turbulence. Many business owners are already tired after the last few years of COVID stresses and don’t have the strength to push hard again through this anticipated downturn. Finding a new owner or bringing in a partner can give your business the extra horsepower it needs to make it through successfully.
Freezing and waiting it out, is rarely a good option. Freezing will leave your company rudderless during a storm that could build to a potential tsunami if all the above challenges materialize. This could be detrimental to your business’s future.
We highly recommend that business owners review their personal response at this time and make sure they are picking options one and two but NOT three. Fighting or fleeing are viable responses but freezing is a risky option that likely won’t bring the positive results you want.
Feel free to reach out to our team at Transition Architects to review your approach and discuss which is best for your business. We have many years of experience in the areas of business operations, selling businesses, and spearheading strategic reviews. We are always here to help and offer an expert opinion.
Source: Psych Central: Fight, Flight, or Freeze Stress Response
Source: RBC: Forward Guidance
Source: Cerity Partners: March 2023 Economic Market Outlook
Source: Linkedin: Fight or Flight Human Responses