Are You Ready for the Next Economic Challenge?

Five years after the pandemic, we are in the midst of another potential crisis.

The White House’s on again, off again tariffs could impact our industry as severely as the coronavirus did. Whether you agree with the long-term strategy is irrelevant. In the short term, it’ll hurt.

Uncertainty makes buyers cautious.

Some event production companies have already lost business. Clients dependent on imported goods are reconsidering their events. While not every sector will feel the impact immediately, economic trouble flows downhill. It always reaches us eventually.

Are these tariffs reversible? I’m not ready to commit either way. We’re somewhere between business-as-usual and shutdown.

All I can say with certainty is this: pay attention.

We’re Better Prepared This Time

Many of you have created more balance in your business since 2020.

You’ve kept overhead down. You’ve focused on profit rather than volume. You’ve built scalable operations less vulnerable to seasonal fluctuations.

But these tariffs aren’t just a seasonal hiccup. This could affect us for years.

I have an MBA. I read extensively. I’ve done the math. The promised economic benefits are unlikely to materialize quickly.

The best hope is for common sense to prevail so businesses can move forward confidently.

Meetings Are Investments

And when economic success becomes uncertain, people either stop investing or find cheaper alternatives.

I hope you didn’t store your streaming equipment too deep in the warehouse. Virtual events are a less expensive way to communicate when circumstances change rapidly. They’re far cheaper than flying 5,000 salespeople to Las Vegas.

The Value of Balance

If your business has maintained balance since the pandemic — appropriate staffing, selective equipment ownership, strategic outsourcing, strong supply chain relationships — you can adjust to whatever comes next.

If you haven’t achieved balance and scalability, now’s the time. My book, “Balance: How to Build a Scalable Business with Less Stress and More Profit,” is a comprehensive guide to surviving economic uncertainty and seasonal fluctuations.

Balance won’t eliminate hard decisions during a deep recession, but you’ll make smaller adjustments than you would have five years ago.

Prepare for Market Changes

Economic shifts will create turmoil in our talent market. The US economy is dependent on consumers. When taxes go up, consumer spending goes down. People lose jobs.

More freelancers will enter the field, but don’t count on lower costs. Assume your direct expenses will stay the same.

Make your business as profitable as possible while remaining flexible. Understand your clients’ uncertainty about how tariffs or higher taxes on consumers will affect their operations.

Protect Your Business

Remember the painful deposit refunds from 2020? Apply what we learned:

1. Use progress billing. Bill for completed work throughout the project’s lifecycle instead of all at once. This way, you get paid for what you’ve already delivered.

2. Implement non-refundable payments. Clearly designate certain payments as non-refundable to cover your hard costs and initial planning work.

3. Reduce reliance on cancellation fees. Don’t get stuck returning money for work you’ve already completed or expenses you’ve already incurred.

When confirming upcoming shows with uncertain clients, offer a pathway that:

• Minimizes their risk

• Covers your expenses

• Allows them to adjust or downscale without losing momentum

Moving Forward

Be cautious about hiring. Continue focusing on sales, but avoid adding overhead. Maintain flexibility with clients who face uncertainty. Show them you have solutions when their budgets change.

Economic uncertainty is bad for business, and there’s plenty of it right now. Protect yourself. Take care of your employees. And find peace in the knowledge that you’ve built a scalable business ready for the unexpected.