As we all know, COVID-19 caused a shutdown of many aspects of the U.S. and world economies. Due to, among other things, funding and other relief from the U.S. government, the economic downturn that many had initially projected has not yet materialized in the ways that were anticipated. Bankruptcy filings are down 29.1% for the 12-month period ending on Sept. 30, 2021, accordingly to the Administrative Office of the U.S. Courts. Nevertheless, many businesses and industries continued to be impacted through the end of last year by issues such as worker shortages and supply chain problems, as U.S. ports had historic backlogs of cargo ships waiting to offload their goods ahead of the 2021 holiday season. Additionally, inflation is on the rise, leading to increased pricing, and the country is going into mid-term elections in 2022, all of which can negatively impact economic outlooks for 2022.

Given these issues, which do not appear to have a quick solution, now is a critical time for companies to reassess their business and finances if they have not already, so that they can be prepared for the future. Proper planning is key to ensuring a company's financial health when facing an economic downturn. Although companies will come into such planning with different levels of financial health, the same considerations can be helpful in determining the best path forward.

A good starting point is the budget and plan you have for this year. Consider: How have revenues changed since the beginning of the pandemic to now? Although many pandemic-related restrictions and mandates have ended and business have opened back up, customers may not have the same spending habits as they once did, particularly if your prices increase to account for supply and/or inflation issues. Are there ways that the business can transition to take into account the "new normal" and changing customer preferences? Many customers got used to restaurants' take-out and delivery services and retailers' curbside pick-up alternatives. Are these services that those companies can continue to offer going forward? Be creative with the solutions, but also be careful of solutions that have associated costs and expenses that may not be justified.