Keep calm and focus on what’s really important
With the constant news surrounding the energy crisis (and waiting for a new Prime Minister to see what the government will do about it), soaring interest rates and rising inflation, it's difficult not to worry and lose sight of what’s really important – the health and welfare of you and your loved ones.
The crisis we all face is a potent mix of inflation, recession, high debts, and the core reason for it all, a wartime energy shock. It is worth remembering that this is the point. It is not the market driving the crisis, it is geopolitics, diplomacy and conflict. On an individual level, this situation is not within our control. So what can we do to keep rational whilst this crisis unfolds?
It is worth recalling a quote from the singer Celine Dion: “Life imposes things on you that you can’t control, but you still have the choice of how you’re going to live through this”.
Firstly, know that you can only control your life and those close to you. Everything else going on is typically uncontrollable. So take time to set some long-term goals to give you a sense of control. Next, list the things that make you happy and safe. By doing this, you can focus on the good things and not the other stuff. Thirdly, take time out of your busy schedule to do things you enjoy. Doing something you are good at reinforces a sense of self-worth and purpose.
If you own a business, then:
1 Take time to review your personal objectives – the business is there to provide you with what you want from life, not the other way around!
2 Look at where the business is now – its strengths, weaknesses, opportunities and threats, and understand its position in the marketplace, the competition, the systems, the way things are done and the improvements that could be made.
3 Focus on what the business will look like when it is “complete” or running profitably and successfully. Then you can determine priorities – the big issues that need to be focussed on.
It is also a good idea to look at where you are now and plan for a range of scenarios (good and bad) so that you can be flexible about the direction you should take.
Ask us about our One Page Analyst, a “what if” scenario planner which takes your projected 2022 figures and allows you to work out the effect on profit of reducing expenses, increasing sales, and increasing or decreasing prices.
If you need help during the next few months, please call us – we are here to support you!
