Mark Hauser, the founder of Hauser Private Equity and advisor to the Federal Reserve on financial regulatory reforms and market stability, recently hosted a conference called “Navigating an Economic Downturn.” The event explored strategies for business owners, managers, and executives. Here, Mark Hauser discusses the plans that have served him well in the past and how they can help other business owners and executives weather the economic downturn.
- Perform Monthly Budget Reviews.
Performing a monthly budget review is essential to fully understand your financial position and set a plan in motion. “Performing a monthly budget review is a significant part of your management and financial awareness. It allows you to see where the money is flowing through the business and how much you have, as well as what you can do differently,” said Hauser.
- Improve Cash Flow in Advance of Problems
Hauser said that all businesses operate based on cash flow. “And unless you are extremely well capitalized, it is essential to have the cash flow in place to get you through the downturn,” he said. “It is important that you monitor your cash flow every month and actively manage it so that problems do not occur and sales are not lost.”
- Know Your Costs
Hauser advises business owners to understand all costs, including insurance, marketing, and office labor. “As business owners’ needs change, the costs change. So you have to be aware of what you need upfront before your needs do,” he said.
- Look Beyond the Recession
Looking to the future is another important consideration for business owners. “It is important to look beyond the recession,” Mark Hauser said. “In doing so, businesses can seek new ways to increase their returns, or they may take new risks that help them succeed in the long run.”
Mark Hauser emphasized that business owners should be prepared for the economic downturn by keeping their businesses current with all necessary information. “You must understand your financial position by performing a budget review, monitoring your costs, and looking beyond the recession. Business owners must also be prepared to adjust, adapt to the situation, and overcome problems. There are always ways you can make your business better by simply knowing the information that pertains to your business,”