The holidays are to be enjoyed as many people globally look forward to the days they get to spend with their loved ones and not worry about work. While holidays hold a lot of promise for many, entrepreneurs may not feel that way as they have businesses to run at a time that a recession is looming. Kayvon Kay, the founder of The Sales Connection, has shared his opinion on how the holidays impact business owners.
Kayvon Kay believes that the effects of a recession vary from one business to another, but these effects can be predicted based on the size and type of the businesses. In his opinion, some small businesses will experience cash flow issues because their clients may delay payment on invoices, while a fortune 500 corporation may cut jobs, save money and get improved terms from suppliers. So, Kayvon Kay believes that every business owner should understand how an economic downturn may affect their business to prepare them for the ensuing recession.
While studies have shown that most businesses are negatively affected by recessions and a few businesses escape unscathed, Kayvon Kay believes that a company’s size and the industry it operates in play a significant role. However, Kayvon also believes it boils down to preparation, and he encourages business owners to arm themselves for these economic downturns adequately.
Kayvon Kay expects private companies to enjoy more financial flexibility because they do not have stringent quarterly earnings expectations like public companies. He also postulates that businesses with cash reserves and access to capital are the only businesses that may survive and thrive during a recession. “These are common challenges for small and midsize businesses during ordinary times, which is why planning well in advance to “recession-proof” your business for the inevitable next downturn is so critical. A recession ripples through many parts of the economy. When consumer demand for products and services drops, businesses typically slow down operations, in turn requiring less labor and materials, the latter of which then reduces business-to-business spending. As a result, unemployment increases, which further lowers consumer demand. It’s important to note that consumers and businesses still spend during a recession, just at reduced levels and with shifted priorities,” Kayvon explained.
In his submissions, Kayvon Kay’s key takeaways on the effects of the recession on businesses include reduced profits, tightened credit conditions, limited inventory or stockouts, cash-flow reductions, a decline in product quality, employee layoffs or benefit reductions, decreased demand marketing constraints, price war and operational changes. As an expert in the business and sales fields with over twenty years of experience, Kayvon Kay has witnessed different market behaviors and understands first-hand the things that business owners go through to keep their businesses running. With his brand, The Sales Connection, he has helped many businesses improve their sales and master the art of sales. The Sales Connection works with high-level consultants, coaches and mid size businesses while establishing themselves as the fastest growing sales training and sales management company in North America.
