West Coast Franchise Law - August 2022

Preparing for the Worst Is Your Business Recession-Proof?

Runaway inflation remains a top concern among Americans, and the federal government has taken steps to try to rein it in. In June, the Federal Reserve (Fed) raised interest rates by .75% — the largest increase since 1994. There are also signs that additional interest rate bumps may follow. As a result, many economists argue a recession is increasingly likely, if not yet inevitable. So, now is the time to start preparing your business for the worst. One of the biggest lessons the Great Recession of 2008 has taught us is the importance of securing capital early. In 2008, loans became scarce, and many businesses couldn’t receive the financing they needed to survive. Business owners who anticipate cash flow problems in the event of a recession should strongly consider seeking financing now while it’s still available. Otherwise, they might come up short in a time of crisis. You’ll want to know where you stand before a downturn, so now is the time to conduct a financial audit. Experts recommend having six months’ worth of operating expenses in savings to keep your business afloat. If that’s impossible, it’s time to give financing another look. Business owners should also evaluate their costs and determine what is unnecessary. Can that upgrade wait? Are customers noticing the little perks you think are critical? Don’t compromise quality, but be frank while assessing your business’ spending.

If a recession does happen, it’s not all doom and gloom. Employers would likely see an increase in job seekers applying for work, improving the talent pool available for hire. Still, layoffs negatively affect both the dismissed workers and those

who are left behind. Morale can suffer, and so can your image. So, it’s important to avoid unnecessary layoffs whenever possible. Be careful in your hiring decisions now to avoid potential pain later. Further, remember that this is a stressful time for your employees, too. They’re concerned about whether they’ll lose their jobs and be out of a paycheck. Don’t make

any promises you can’t keep, but keep lines of communication open with your workers. If you don’t, speculation and rumors might run amok.

None of us knows what the future will hold, but it pays to be prepared. No one wants to see a recession occur

— but that doesn’t mean you shouldn’t have a plan in place.

CREAMY AVOCADO GAZPACHO

TAKE A BREAK

This refreshing and healthy gazpacho is sure to help you beat the heat!

Ingredients: •

2 cups fresh peas, shelled 2 medium-large ripe avocados 2 tbsp extra virgin olive oil 1 serrano pepper, stem removed and sliced in half 1 medium shallot, peeled and chopped in half 1 medium English cucumber, roughly chopped

Inspired by RainbowPlantLife.com

• • •

• • •

1 cup fresh cilantro

3 tbsp freshly squeezed lime juice 1 1/2 cups water, plus more for boiling 1/2 cup full-fat coconut milk Kosher salt and black pepper, to taste

• •

Directions: 1.

In a large bowl, prepare an ice bath. 2. In a saucepan, boil water and add peas. Once water returns to boil, cook for 90 seconds. 3. Transfer peas to ice bath. Drain once cooled. 4. In a blender, combine peas, avocado, olive oil, serrano pepper, shallot, cucumber, cilantro, lime juice, 1 1/2 cups water, and coconut milk. Blend until completely smooth and creamy. 5. Season to taste with salt and pepper. 6. Serve immediately at room temperature, or transfer to the fridge to serve chilled.

Solution:

3

206-903-0401

Made with FlippingBook Ebook Creator