No business is an island. As much as you might see your company as a lone ranger battling against an industry full of competitors, the reality is that, at times, everyone is in the same boat. Specifically, all businesses, even those from different industries, are in the same economic boat. Why? Because, even if you’re running a tight ship and sailing smoothly across your sector’s waters, you still have to avoid icebergs. Those icebergs come in the form of economic variables. From inflation and interest rates to recessions, trade embargos, and everything else in between, the economy can and will affect your business.
We’re not saying that you can’t thrive during tough economic times or that success is guaranteed when economies are strong. However, to assume you operate in a vacuum and that your business will never be affected by changing economic conditions is, at best, naïve. As a business owner, you need to make use of the resources around you and track the economy. You don’t have to be an economist, per se, but you do need to know what’s happening in your country and other significant markets.
Planning Is Preparing for Any Eventuality
How do you do this? That’s the easy part. How you analyze and react to what’s going on isn’t so easy, but getting the necessary information is. For example, you can use the economic calendar online to search through important announcements from around the world. The calendar allows you to filter the results by country, date, and importance. You’ve also got the option to filter the results based on the type of announcement. So, if you want to know about inflation, there’s a filter for that. If you want to know about the labor market or trade announcements, you can filter the results for those categories.
All of this means you can get a general overview of forthcoming economic announcements and focus on specific events. Doing this allows you to plan and, if necessary, pivot. Let’s say you know an inflation announcement is due in three weeks. This gives you the opportunity to ready certain strategies just in case things take a negative turn. We’re not saying you can completely eliminate all risk by knowing what announcements are due to be made. However, if you’re able to plan ahead, it’s easier to be prepared.
Tap into Twitter’s Economic Insights
Another stream of information you can tap into is Twitter. Like all things on social media, you should approach Twitter feeds with caution. However, if you follow the right accounts, it’s not only easy to get economic information but insights in a digestible format. Everyone has their favorite accounts to follow and we suggest searching for economic keywords to find yours. But, if you want a starting point, some of the most respected economic commentators on Twitter are:
- @jenniferdoleac aka Jennifer Doleac, an economics professor at Texas A&M University
- @Mylovanov aka Tymofiy Mylovanov, President of the Kyiv School of Economics
- @adam_tooze aka Adam Tooze, an economic historian
Those accounts are great places to start. If you can combine their insights with other online resources, such as the economic calendar, you’ll give yourself the best chance of understanding the economy.
When you can understand the economy, you’ve got a better chance of riding the inevitable ups and downs. You might not be able to avoid them but, if you can see the icebergs coming, it’s easier to change course and avoid danger. Your business might be great, but it doesn’t operate in a vacuum, so make sure you keep your finger on the economic pulse at all times.
