With 2024 coming to a close, there are more concerns than just the holidays.

The holiday period is usually a time to unwind and wrap up the year. However, the future brings serious concerns for both business and personal planning. Regardless of your political stance, certain business realities require preparation and contingency plans. This coming year may hold some significant and rapid changes, which the markets are already adjusting for, and dessert is being served up while you still have a full plate at Thanksgiving.

One glaring reality is the level of uncertainty towards the future.  This is compounded by policy changes and is evident in the day-to-day media.  Those include but, not limited to:

• Potential tariffs and trade wars
• Labor market changes
• Logistics and shipping restrictions
• Uncertainty of foreign operations

Many small to mid-size businesses may dismiss these issues, assuming they are irrelevant due to their current operation status (e.g., international versus local operations). This assumption is far from the truth. Consider taking the following key actions now to prepare for the new year:

1. Assess your critical technology equipment, including servers, network switches, laptops, etc. Ask your IT professionals to scan your network and inventory looking for critical equipment which may “age out” or become 3-4 years old next year. Consider replacing that equipment now to avoid costly replacements or prolonged downtime caused by electronic component supply chain problems.  During the pandemic, lead times to replace critical infrastructure equipment often exceeded 6–8 months. The majority of technological equipment and components are sourced from Asian countries like China, Taiwan, and South Korea, which can create serious issues if your equipment fails.
2. Hold off on hiring or use temporary labor to get projects done. Should there be significant job losses in the governmental sector next year, the labor markets will be flooded, and consumer spending can slip into a hole. In times of uncertainty, it is best to take a conservative approach and hire less and leverage contract labor.
3. Stay liquid. Focus on bringing accounts receivable balances down and keeping a high degree of cash over long-term investments.   With potential economic changes uncertain, it is best to remain more liquid than highly leveraged.
4. Domestic (U.S.) capital investments should be postponed, as future investments in the U.S. may offer favorable tax incentives. However, with concerns towards foreign investment, it may be better to close those deals sooner than later and be penalized.
5. Businesses dependent on the supply chain (manufacturing, distribution, food processing, etc.) should evaluate their suppliers for raw materials, components, and other essentials, while assessing potential disruptions. This should be followed by establishing contingency plans, alternative sources and setting up “emergency” supply contracts.

The only full plate we wish you is the one at your dinner table and not on your to do list.  Sagin works with a variety of businesses across various industries ranging from small ($10M) to midsize ($900M). Many of which may not have the resources to carry out tasks during periods of rapid change.  We manage the systems environments of our clients with our IT Managed Services practice and our management consulting group provides strategies, supply chain and operations management to protect our clients and the interim labor to get the job done. We wish you a wonderful holiday season and hope for the road ahead.

Sagin, LLC is a management consulting and IT managed services firm which provides full service 24/7 support to organizations including help desk, infrastructure, server/cloud management, data security risk mitigation, strategic planning and specializing in non-profits. For more information about an independent assessment protecting your organization or how to better manage IT costs, you can contact us at: info@saginllc.com or visit us at: www.saginllc.com or +1.312.281.0290.