In the face of decades-high inflation, sharply rising interest rates and ongoing supply and labor shortages, JPMorgan Chase recently surveyed more than 1,500 midsize business leaders to understand their economic outlook and business challenges. The survey found that business leaders are tackling these challenges in a number of ways, including: increasing prices, investing in automation and technology, expanding internationally and more. Read on for more findings from the JPMorgan Chase survey and how they can help your business thrive in today’s economy.
Optimism about the national economy has plunged to a 12-year low, according to the survey. Just 19% of business leaders say they’re optimistic about the national economy for the year ahead, down from 75% one year ago. Pessimism around the national economy has jumped to 51% from 10% a year ago. When it comes to the global economy, business leaders have an even more muted outlook, with only 9% expressing optimism.
These numbers are concerning because business leaders are the driving force behind our economy. They create jobs, innovate, and generate growth. When business leaders are pessimistic, it can have a ripple effect on the entire economy. We need to do everything we can to support business leaders and help them feel optimistic about the future. We need to create an environment that is conducive to growth and innovation. We need to provide business leaders with the resources they need to succeed. Only then will our economy thrive.
In spite of the current negative business climate, many business leaders are still confident about their own companies’ performances. More than 7 out of 10 respondents are optimistic about their company’s growth in the next year and feel upbeat about their industry’s performance. This is a significant decrease from last year, when 88% and 82% respectively felt confident about these things, but it shows that business leaders still have some faith in their ability to weather the current economic storm.
Additionally, nearly three-quarters of business leaders surveyed anticipate increased revenue and sales in the coming year. Although profits are expected to grow less than they have in the past, with only 57% of business leaders expecting increased profits compared to 71% last year, this still indicates that businesses are expected to continue growing despite the challenges they currently face. In conclusion, business leaders remain generally confident about their companies’ abilities to perform well and grow, even in the midst of a difficult economic climate. This bodes well for the future of business and the economy as a whole.
Business leaders are under immense pressure to keep prices stable in the face of increased costs, while at the same time navigating supply chain and labor issues. And yet, despite all of these challenges, they seem to remain mostly upbeat about their companies and the areas that they can more directly control. This is a testimony to their resilience, determination and dedication. They know that difficult times don’t last, but tough people do. And they are determined to see their businesses through to the other side.
“The first half of 2022 has really tested business leaders with pricing pressures and increased interest rates, on top of the supply chain- and labor-related issues they were already facing,” said Ginger Chambless, head of research, JPMorgan Chase Commercial Banking. “While it’s surprising to see how drastically sentiment has shifted, it is important to note that business leaders are still mostly upbeat when it comes to their companies and areas that they can more directly control.”
The findings from the JPMorgan Chase survey show that business leaders are taking steps to position their businesses for success in the face of challenges.
What steps can your business take to navigate the current economic landscape?
1. Evaluate your expenses and see where you can cut costs
As a business owner, it’s important to evaluate your expenses on a regular basis and look for areas where you can cut costs. This can be a difficult task, as business expenses can quickly add up. However, there are a few key areas where you can start looking for savings.
One is office space. If you’re paying for a large office, consider downsizing or moving to a cheaper location. You can also save money by negotiating better deals with suppliers or switching to cheaper alternatives. Finally, don’t be afraid to cut back on unnecessary expenses, such as business travel or entertaining clients.
By carefully evaluating your business expenses, you can save thousands of dollars each year.
2. Renegotiate contracts with suppliers and service providers
Businesses large and small are always looking for ways to cut costs and increase profits. One way to achieve this is to renegotiate contracts with suppliers and service providers. By doing so, businesses can get better terms, lower prices, and more favorable terms and conditions.
However, it is important to approach these negotiations in a professional and businesslike manner. By being prepared and knowing what you want, you can increase your chances of success. Furthermore, it is important to be flexible and willing to compromise.
By taking these factors into consideration, you can put yourself in a position to get the best possible deal for your business.
3. Streamline your operations to improve efficiency
Business is all about efficiency. The more efficient your business operations are, the more successful you’ll be. There are a number of ways to streamline your business operations and improve efficiency. One way is to streamline your communication systems. Make sure you have a clear system for communicating with employees, customers, and suppliers.
Another way to improve efficiency is to automate as many business processes as possible. Use technology to automate tasks that would otherwise be done manually. Finally, make sure you have a clear plan for each business process. know what needs to be done and when it needs to be done.
By streamlining your business operations, you can improve efficiency and take your business to the next level.
4. Diversify your product or service offerings
It’s important to always be thinking about ways to diversify your product or service offerings. The more options you have, the better positioned you’ll be to weather any storms that come your way. When one business strategy isn’t working, you’ll have others to fall back on. And if you’re able to identify new opportunities, you’ll be in a prime position to take advantage of them.
Diversification doesn’t necessarily mean adding new products or services from scratch. It can also mean expanding what you’re already offering. For example, if you run a small business that sells products online, you could consider adding a brick-and-mortar component or vice versa. Or you could explore new channels for marketing and selling your products. The key is to always be thinking about how you can grow and expand your business.
By diversifying your offerings, you’ll be positioning yourself for success now and into the future.
5. Market your business in new and innovative ways
There’s no denying that marketing is essential for any business. After all, how can you expect to sell your products or services if no one knows about them? However, traditional marketing methods (such as print ads and TV commercials) are becoming less and less effective. In order to reach customers, you need to find new and innovative ways to market your business. One such way is social media marketing.
By creating a strong presence on platforms such as Facebook, Twitter, and Instagram, you can reach a large audience with minimal effort. In addition, social media provides an excellent way to connect with potential customers and build relationships. Another innovative marketing method is content marketing. By creating high-quality content (such as blog posts, infographics, and videos), you can attract attention online and establish yourself as an authority in your industry.
When it comes to marketing your business, think outside the box and you’ll be sure to succeed.
6. Cut down on employee turnover rates
In any business, the turnover rate is always going to be an issue. It’s costly and time-consuming to constantly have to train new employees, and it can be frustrating for customers when they keep seeing new faces. But there are ways to combat high turnover rates, and it starts with creating a positive work environment.
If your employees feel valued and respected, they’re more likely to stick around. Provide opportunities for growth and development, and make sure that your employees feel like they’re part of a team. When people feel like they’re part of something larger, they’re more likely to be loyal to their employer.
“As has so often been the case in the past two years, business leaders are reacting to today’s challenges by shifting their strategies and taking calculated risks to continue expanding and innovating their businesses,” said John Simmons, head of Middle Market Banking & Specialized Industries, JPMorgan Chase Commercial Banking. “They’re setting their expectations high and embracing new opportunities to grow even as they navigate this new set of challenges.”
The takeaway for businesses is that in order to succeed, they must continue to prioritize growth even amidst uncertain times. They also need to be nimble and prepared to face whatever challenges come their way. This means being proactive in looking for new opportunities, while continuing to focus on the core strengths of the business.
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