A modern Western saying derived from a Latin quote. While there is a military inference, it is used here in the business world as well. Fortune favors the bold means that taking risks and being courageous can bring you success, good luck, or whatever equivalent you’re after in your treasure hunt of life.
Over the last 2 ½ years or so, business has had to tread lightly. In early 2021, we entered a period of high inflation. The business play book said to hang onto cash, watch you’re A/R and Inventory levels. Then, the steps taken to counter inflation led to predictions of a recession. Leading indicators implied there was a recession coming. After a while they said it was still coming. Even longer after that they still said it was coming. All the while, companies are now implementing the recession business playbook,
- Mind the budget
- Pay down outstanding debt
- Beef up your emergency fund
- Cut back where you can
- Trim employees’ hours or salaries, consider layoffs
- Determine where you can expand
Wait, say what?
Yes, it may seem counterintuitive during a period of cost-cutting, but if you have the funds (see 1-5) , a recession can be an advantageous time to expand through getting into new products.
Your competitors are hunkered down, fixating on the budget, cutting back and restricting hours or even laying off due to lower production orders. They are also not doing new product introduction (NPI) which is NRE and quickly spent cash.
But if you took steps to battle inflation and have been mindful of a possible recession and had development in the works, ACT NOW. The prediction of recession continues to push outward a quarter to year at a time (now they are saying 2025?) If there was ever a time to be bold, this might be it.
PlastiCert was bold back during the COVID recession. During that summer in 2020 PlastiCert replaced its three largest presses. Interest rates were SO LOW we decided to do an SBA loan. When the bankers (ours and SBA) saw what we were paying versus what they were originally quoted, eyebrows were arched with a “WOW” exclaimed. Customers had cancelled orders and the manufacturer wanted to move them.
I don’t mind saying that right now, some customers are holding back on new product development. Our mold shop has some capacity. (We just received another new mold order today).
So, I am telling you, BE BOLD. Fortune favors the bold. Lead times will never be better, communication back and forth will be quicker than it usually is. Best of all you’ll be expanding, while your competitors will be contracting.
So, give us a call. Our job is to make you look good doing your job. Fortune favors the bold!