By Corey Luckow, President and Mike Coelho, CFO

You know, when we became business owners, we never imagined how crucial it would be to become amateur economists. But here we are, and understanding economic indicators has become as important as knowing our product line.

We’ve learned that for small businesses like ours, economic uncertainty can really shake things up. That’s why we joined Vistage, an executive coaching organization. It’s been a game-changer for us.

Through Vistage, we got our hands on the CEO Confidence Index report. It’s like a crystal ball for the business world, capturing what CEOs across various industries are thinking and feeling. We’ve found it so valuable that we wanted to share some insights with you.

The Economic Pulse

Right now, there’s a cautious optimism in the air. The Vistage CEO Confidence Index rose to 85.9 in Q1 2024, with a small dip to 83.3 in Q2. Now, I know these numbers might sound like gibberish, so let me break it down. We’re at levels similar to the low point of the growth decade that began in 2010. What does this mean? The economy is like a coiled spring, ready to bounce back.

At Zumasys, we’re taking this as our cue to invest. We’ve made some strategic hires recently. For you, this might mean upgrading your equipment or exploring new markets. The key is to be ready for the growth that’s likely coming.

Looking Ahead

We’ve been listening to experts like Lauren Saidel-Baker from ITR Economics. She’s telling us that while we might see a slight dip in 2024, growth is on the horizon for 2025. Yes, there are challenges – the job market has cooled, wages are a pressure point, and inflation is a concern. But we believe these are short-term speed bumps.

Making Moves in the Meantime

So, what do we do while we wait for the economy to fully reignite? Well, we’re not sitting on our hands, and we don’t think you should either. Here are four areas we’re focusing on:

  1. Technology: We’re looking at AI and automation to boost productivity. For manufacturers, this could mean using AI in quality control or automating repetitive tasks on the production line. We’re also modernizing user interfaces of legacy applications, making them more intuitive for new employees to learn and use effectively.
  2. Workforce: We’re investing in our people’s skills. This might mean training your team on the latest trends like AI through online courses. At Zumasys, we’ve encouraged our employees to use AI for learning, improving work quality, and increasing speed. It’s the best $20 per month you can spend right now on a subscription.
  3. Business Processes: We’re streamlining our operations with new technologies. Consider integrating systems that sync in real-time with your data or implementing tools to customize repetitive workflows. These improvements lead to smoother operations, better decision-making, and happier customers. For us at Zumasys, it’s pretty easy to customize our ERP to remove manual processes, and we have the developers to do the work.
  4. Talent Retention: In this job market, keeping your best people is crucial. We’re focusing on building a workplace culture that people want to be part of. At Zumasys, we started two programs that have become core to the company: The Bucket List and Half-Day Fridays. The Bucket List program rewards milestone achievements by helping employees cross off items from their personal bucket lists. Half-Day Fridays, tied to monthly sales goals, give employees extra time for themselves, their personal tasks, and their families, making each weekend feel like a holiday weekend.

By focusing on these areas, we’re not just treading water – we’re actively preparing for the future. And we think you should too. It’s about making smart moves now that will set us up for success when the economy picks up steam.

 

Challenges are Opportunities

Look, we’ve been through tough times before. Each challenge has made us stronger, smarter, and more adaptable. This situation is no different. By focusing on technology, processes, and people now, we can position ourselves for the growth that’s coming.

Remember, it’s not about having all the answers. It’s about being prepared, staying curious, and being ready to adapt. That’s how we’re navigating these uncertain times, and we hope these insights help you do the same.

In our recent presentation, Measure What Matters: How to Leverage Data for Strategic Growth, we dive into how successful businesses harness the power of data to drive smarter decisions. If you’re interested in actionable strategies and practical advice, I highly recommend giving it a watch.

For those of you who love digging into the details, check out the full Q1 2024 Report and Q2 2024 Report Vistage reports. We’re all in this together, and we’re excited to see what the future holds for all of us in the business community.

Here’s to adapting, innovating, and thriving in whatever economic climate comes our way.

Corey Luckow – CEO, Zumasys
Mike Coelho – CFO, Zumasys