2023 Business Reflection & 5 Recession Survival Lessons
Thank goodness, 2023 is over! I'm sure some people have had a great year, but for me and my business it was a challenge. 2023 was full of surprises and adjustments to continue surviving another recession. But as Yakima business owners, right now is the time we set goals and budgets for 2024. I think one of the most important things we can do as entrepreneurs is reflect and decide what we want our next year to look like. I've definitely got some lessons to pass along from this year, too!
We’ll be going over:
5 Business Lessons to Survive (Another) Recession
1. Look Over Multiple Years When Planning Ahead for the Next One
2. Use Technology & Embrace Change
3. Get Support from People Who are Good at Their Craft
4. Optimism is Key for Growing a Healthy Business
5. Reframe How You View Business "Goals" & "Budgets"
What My Business is Looking Forward to in 2024
5 Business Lessons to Survive (Another) Recession
I worked in real estate during the Great Recession of 2006-2011, and I remember wondering if there would ever be an end to the downturn. It was such a time of uncertainty and hardship; I had to regularly deliver the bad news and witness the tragedy of people losing their homes. Around April 2023 was when we realized this year was going to be one of THOSE years. But instead of fear, I was pleasantly surprised to find the confidence that comes with experience. I finally felt like one of those "wise, old women."
There's always a light at the end of the tunnel and lessons to be learned!
1. Look Over Multiple Years When Planning Ahead for the Next One
In real estate, we plan our budgets almost a whole year in advance. It can be a challenge, but I like to look at the past couple of business years - not just one - when I'm doing my in-depth analysis for next year.
“It's important to look over multiple years instead of just a single year. If I looked back at just last year, I would be ignoring my own history of being in business for almost 25 years. But if I look back multiple years, I can evaluate my past successes and challenges while I plan for 2024.”
Will there be adjustments made along the way for 2024? Yes, of course. But as entrepreneurs, our experience has a valuable, stacking effect; it helps us refine our business plans and see what did or didn't work during harder times.
2. Use Technology & Embrace Change
Another valuable lesson I've learned is the impact of technology on my business, and I believe it's shaping the entire entrepreneurial landscape. It's astonishing how much information, both accurate and misleading, is readily available. COVID-19 has changed how we fundamentally do business, and technology has taken center stage in the real estate industry.
This year, my company Heritage started going paperless. Our goal is to be 100% there by the end of first quarter 2024. This is a significant change for me personally because I've always loved using paper, as I'm a highly tactile person. We even had a little ceremonial burning of my planners (it was fun but bittersweet)!
It took me about five years to finally embrace the idea of going paperless, but now our office is free from filing cabinets and boxes, and we're determined to carry this momentum forward. Embracing technology has:
Provided us with many educational opportunities
Made work easier, more productive, and cost effective
Helped the Heritage team develop better work habits & behaviors
3. Get Support from People Who are Good at Their Craft
Social media is another technology that I've chosen to engage this year. I was resistant for a long time; it takes a lot of courage to sit in front of a camera and say what's on your mind. But while it's been a BIG stretch, it's had a lot of benefit for my business, especially my Living In Yakima series.
Together, we've had a blast shooting and narrating the story of the Yakima Valley.
Our team has really been guided by Donald Miller's book, Building A Story Brand.
I can't recommend it enough. This book has helped us align our approach of telling stories to help people understand:
Who we are
What we do
How we can help
Why we run our business (arguably, one of the most important parts)
What's crazier is that I chose to pursue a passion project like Living in Yakima when my business was down 30%. It required additional investment at a time when money wasn't flowing in. But I'm deeply committed to speaking with women in business, shedding light on our journey, and encouraging economic growth in the Yakima Valley.
“I feel so passionate about Living in Yakima, and I think it's helped me get through these harder times. Even though it's a significant financial commitment, it fuels me and lifts my spirit. None of it would have been possible without the support of people who are good at their craft.”
4. Optimism is Key for Growing a Healthy Business
One of the things I'm most proud of this year is not going into "doom and gloom," even though I was watching our business sharply drop 30-40%. Instead, I chose to stay the course, stay hopeful, and make adjustments.
It never hurts to ask questions like:
How do I refine my budget?
What can I be doing in the meantime to come out on top?
What kind of training do my agents need?
“What I learned during the Great Recession years helped me survive 2023. I was able to maintain hope, be optimistic, keep my head down, and not get pulled into all the negativity of the news media. My encouragement to you would be to know we'll get to the other side.”
It sounds a little crazy, but in some ways, now is actually a much better time to buy (even at a 6% or higher interest rate):
You don't have a bidding war
You don't have to pay $30,000+ above asking price
You don't have to give up all your your contingencies
You don't have to waive inspection
You don't have to waive financing
Throughout 2023, I've had to help clients recenter on the positive. Just because you missed out on 3% interest rates doesn't mean the sky is falling! There's a light at the end of the tunnel, and we'll get through it. We always do.
5. Reframe How You View Business "Goals" & "Budgets"
If you decided to go from Washington State to New York City, you're going to need a plan: food, clothes, gas, etc. If you don't have a plan, you're going to get lost in the woods, lose a fortune, and stress your relationships. Your business is no different!
But for many - myself included - the word "goals" is right up there with the word "budget." Very few people enjoy these words, so I try to put a spin on them as I work on planning for my next year.
I try to think of "budget" as more of a "spending plan." Reframing finances in this way feels a little more exciting and optimistic. And I prefer to think of "goals" as "strategies." A goal tends to feel like a means to an end, but a strategy feels more actionable or driven.
One of the most helpful things I find with strategizing is to break down my year into small, bite-sized pieces. I prefer very specific, compact, and itemized tasks. This allows me to fill up my schedule, avoid distractions, and helps me stay the course. I can easily get overwhelmed looking at the full year, so I like to break it down:
By quarter
By month
Week
Finally, by daily action items
I would encourage you to figure out what works best for you as we start looking at 2024. Make planning an approachable task! If you need to put a spin on words, do it.
“When we have a strategy, we have structure. When we have structure, we can execute on our dreams and accomplish what fulfills us and those around us.”
What My Business is Looking Forward to in 2024
I suspect 2024 will be a very dynamic year for business owners.
We're hoping the interest rates will come down a bit by mid-summer and that business will pick back up. At the end of 2024 is a major election, and everyone is wanting to see the economy come back into recovery. That gives me a lot of hope! My strategy is to really come out on top for the first quarter of 2024.
As for my passion projects, I don't plan to give them up. They've really fueled me, so I'm refining what they look like, dialing in the budgets, and assessing how my marketing plan is going. Personally, I'm looking forward to doing more traveling, and creating a lot more content highlighting Yakima women in business and what it's like living here in the Valley. So many women are wanting to talk with me and tell me all about their business, and it's great!
With my Living in Yakima series, we've been really focused on the different geographic areas of the Valley. But in 2024, I suspect we'll move into some more specific things like:
Top restaurants
Activities
Events
The lifestyles of each city
Best glass of wine
Best breweries
I want to deep dive on what Yakima has to offer in terms of things that interest people living here, and I'm really looking forward to doing that!
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I think 2024 is going to a kickass year! We survived 2023 in the real estate industry, and economic downturn never lasts forever. I hope some of these ideas resonate with you, and help you improve your business and personal well-being. I'd be curious to know how other entrepreneurs are approaching their business planning for next year. As always, feel free to reach out with your ideas. Thanks for reading, and we'll be continuing our discussion with more Yakima business women throughout 2024!