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Tony Bass

Overcoming stresses in today’s business climate

By Tony Bass

Are we about to have a serious recession? Will tariffs force prices to rapidly rise as we move through 2025? Are we going to lose our labor force due to changes in immigration policy?

These are the questions we have been asked the past few weeks. We will discuss each of these questions in today’s essay.

1. Are we going to lose our labor force due to changes in immigration policy?

We think this is very unlikely. Here’s why. We doubt very seriously that you have been hiring radical political activists. We doubt you have been hiring asylum seekers without proper employment documents.

We know that companies who use the H2B guest worker program are already complying with immigration laws and a rigorous bureaucratic hiring process.

You and your current employees are paying taxes and acting as productive citizens. It’s very unlikely you or your productive workers are targets for deportation. Please quit wasting your time and energy worrying about this!

2. Will tariffs force prices to rapidly rise as we move through 2025?

Prices have been rising and falling based on supply and demand economics since the dawn of time. This will continue regardless of tariff policy.

It’s 100% true that inflation has increased faster since 2021 than any time in our business lifetime. And since many hardscapers got their butt kicked with rising prices (and especially rising wages) the past few years, many are scared it’s going to happen again.

Regardless, if prices go up or prices go down, you must know your numbers. And those companies who know their numbers will increase or lower prices to position themselves correctly in the market.

Please, stop wasting your time and energy worrying about things you can’t control.

3. Are we about to have a serious recession?

We had a very serious recession in 2008 - 2009. If your company was operating during that time, you have some experience in dealing with a recessionary economy. We've survived 5 recessions over 37 years.

And guess what? Recessions ain’t fun! We’ve always found business to be way more fun when we are expanding, growing and dealing with growth challenges.

Recessions force companies to balance their books. And that means the companies that have overextended themselves with credit or built an unproductive overhead structure are much more susceptible to bankruptcy… if sales fall.

Companies that have managed their finances wisely will (likely) continue to do so. That means you build a budget, price right, keep your promises and create client relationships.

Yes, we might have a recession. We are way overdue! It's a natural economic cycle. We hope you are prepared.

We’ve made a rather crazy sounding recommendation to our consulting clients since the great recession of 2008 to 2009. It flies in the face of generally accepted accounting principles.

Simply stated, we have recommended that companies set a goal to build cash equal to one year of company overhead.

For example, a company generating $1 million in annual revenue should be holding about $300,000 in cash.

If you follow our advice, you could literally close your company for a year and not worry about a damn thing! You probably need an extended vacation anyway!

Let’s assume you are not sitting on a pile of cash. What should you do? Here’s the plan.

Fall in love with your customers! Make sure they know you love them by increasing the frequency of communication. Ask for work! Offer services!
Encourage your employees to get their ass out of bed, come to work and take care of your customers. Really!
Invest in your education. Out-learn your competitors, increase your efficiency while reducing waste.

These are winning business practices that never go out of style – recession or no recession. This should be your plan for the life of your business.

So please, quit worrying about what might happen and focus your energy and efforts on your customer's needs. Your customers (and their friends, family members and business associates) will always need help!

If you’re the guy or the gal willing to help, let them know it today!

You will always have work.

Happy Hardscaping!

Tony Bass is the co-author of “The E-Myth Landscape Contractor: Why Most Landscape Companies Don't Work and What To Do About It.” He has helped more than 400 contracting companies grow profits since 1998. Contact him if you need help growing profits at Tony@TonyBassConsulting.com or (478) 822-9706.