60 Minutes recently interviewed Janet Yellen, Secretary of the Treasury, to ask about the likelihood of an economic recession in 2023. Yellen seems to believe that America will avoid a recession. She assured Americans of the strength of our financial systems.
On the other hand, she said our economy is always susceptible to shocks such as Russia’s continuing war against Ukraine. Yellen hopes that the historic interest rate hikes implemented by the US Federal Reserve will curb inflation by the end of 2023 without producing a recession.
By the end of 2023? Inflation is at a 40-year high after months of rising prices. If business leaders haven’t had to make some hard decisions by now, they absolutely will find it necessary to “trim the fat” in the next 12 months.
However, many businesses have been preparing for months now. CNN reported in October that 91% of CEOs see a recession looming. Moreover, only 38% said that it will be a short one. Major corporations such as Amazon, Meta, Paramount, Doordash, and Pepsi, have slashed jobs because it’s the default response to an economic downturn. Enterprise companies can bounce back when the economy improves because they have the capital to do so.
Where does that leave small and medium businesses? Laying off workers could be catastrophic to their very existence because each person is more valuable to the whole company. Cashflow is limited and they can only bleed for so long.
Decision-makers can’t afford amnesia in times like these. Remember the Great Resignation? Many businesses spent more on hiring over the last year in a strong labor market. Imagine eating those hiring costs when you have to lay people off a year later.
It hurts and veering away from the question of recession to talk about the treasury’s sanctions against Russia won’t make us forget about our own needs. Every peace-loving business leader out there wants Russia to back down, but that doesn’t cancel our responsibility to ask hard questions of our financial leaders.
Recession is a serious concern and the economic stressors we have endured will add up to years of financial setbacks for America’s businesses if we don’t act immediately and intelligently.
Tools for Such a Time as This
Fortunately, we have options. Think back to the beginning of the Pandemic. Few people worked from home and most people had never gone to a work meeting online. Now, Zoom is a household name and workers have gotten cozy with the work-from-home life. Right when we needed it, the technology was there.
In a desperate hour, the technology for enabling a portion of the workforce to do telework was already in place.
This fact raises a very important question: Are there currently tools available that can help businesses weather the storm of high inflation and a recession?
The answer is, “Yes!”
Efficiency tools that once were only available to enterprise corporations are now more accessible than ever.
Before the Pandemic
In the early 2010s enterprise companies recognized the value of data automation technology for large-scale businesses. By automating repetitive computer tasks such as data extraction and data entry, they were able to increase efficiency for money-making processes by leaps and bounds. The large-scale adoption of Data Processing Automation (DPA) was already in place at major corporations when the pandemic began.
Meanwhile, most small and medium-sized businesses have never even seen DPA in action, much less been presented with an affordable offer to implement it.
Yet that’s exactly where things have changed over the last few years. DPA developers went to large companies first. Now. (Right Now!) DPA developers are selling DPA as a service to small and medium businesses and the prices for implementation pale in comparison to the potential profits.
Experts predict that the market for DPA will grow to over 13 billion dollars by 2030. For perspective, the market for office software suites such as Office 365 is currently 23 billion, including business, educational, non-profit, and private use.
If these predictions prove true, businesses of every size will need to implement data automation in order to compete over the next 8 years.
The Urgency of the Moment
Recession is a serious threat to businesses and saving money is important. But it’s also necessary to invest so that you can diversify your revenue. Businesses that weather the storm effectively often invest in customer experience and marketing so that they can keep their current clients and scoop up customers seeking to save money as they tighten their belts. Businesses that invest in business efficiency measures will quickly find the cash flow to increase sales and marketing, even during a recession.
The bottom line is this: businesses must do something to lean out and become more efficient. We had the technology to adapt during a Pandemic. And we have the technology to endure a recession. Embrace it.
DatCom’s vision is to go beyond automation to help businesses become more efficient by training their employees to think like business owners. To think lean for the times ahead and give them the enjoyment of becoming overcomers.
What this means on the ground is that your employees can help you expand into new markets as they gain new skills and participate in brainstorming sessions. They’ll give you honest feedback about how to reduce bottlenecks and increase productivity. Moreover, an engaged employee will stick around instead of looking for greener pastures.
Doing what you must do now to become more efficient through a recession will almost certainly make you stronger in the years ahead. You won’t just survive. You’ll thrive.
Take some time to research the stories of successful companies over the last 10 years and you’ll find businesses that overcame the 2008 recession through grit and determination to emerge as a competitive force.
Ask. Seek. Knock.
There are very few turnkey solutions for overcoming uncertain times. Every business has inefficient processes that can be improved, but the path to success requires a focus on discovery. At DatCom, we understand that the discovery process can be time consuming and frustrating, but we also know that it is worth our very best. So, when you come knocking on our door, please know that we respect your search for answers and won’t waste your time on empty promises because it’s our time too.
If you’re looking for tools that can help you weather the storm, investigate DatCom’s efficiency services for the sake of your company.