Business Owners: Take Time to Make Sense of Economic Events

-- Expert Business Source, 12/5/2008 10:15:00 AM

“I’m so busy running my company that I hardly have time to read the papers, much less study economic history,” a fellow remarked to me yesterday following a presentation I’d given on the economy to a group of trucking industry CEOs and managers.

The goal of my presentation was to try and provide a look at how we got into this recession and to compare it to other periods of economic decline. While I had worried that this presentation would simply be a review of the obvious, the trucking leaders pumped me with questions about the economy, the stock market spiral, and the TARP bailout. The talk proved useful in offering perspective on where we are, how we got here, and how the future might look.

The audience consisted of successful, savvy business owners and managers, but I realized that they have been so consumed with operating their businesses that they didn’t necessarily have the time to constantly monitor what is happening in the global economy. When confronted with the need to pay close attention to operations, to obtain financing in a credit squeeze, and to cut costs, executives have to do double duty to keep the company afloat and stay on top of the bigger economic picture.

How can you maintain perspective about the economy and the markets if you’re pressed for time to study what is happening? Most busy executives who are not directly involved in the markets grab their daily news via quick peeks at various Internet sites, the newspaper headlines or during the evening news. Much of the news we get from these sources, especially when we are doing quick checks, is cursory and provides sensational headlines or sound bites. A sound bite may give you some good cocktail party conversation ideas, but sound bites do not provide a deep explanation of what we are experiencing.

The feedback that I received was that taking a step back and looking at the events that occurred across the globe during the last year was very informative and helpful. Gaining perspective about the economy can come from attending a lecture or presentation, but can also occur in other ways.

One of the attendees mentioned that he had been listening to conference calls offered by his money management firm. That firm has been regularly holding calls featuring their chief economist and money managers. Most major mutual fund families and asset managers hold such calls for clients and interested parties. This can be a helpful way to gain some perspective and knowledge in a half an hour or so.

Additionally, many financial websites offer regular commentary or white papers describing economic events or reviewing fiscal events. General online news sites may provide good reporting, but too often revert to panic-inducing headlines. Finding financial sites, either from reputable fund families or asset management firms, or from financial experts can give you the information and perspective you need.

As a company owner or manager, you have your work cut out for you just keeping on top of the business. It can be helpful to take the time to attend educational events, economic updates or to find helpful, un-biased financial sites which provide you with the objective economic information you need.

Suzanna de Baca is president of Private Capital Solutions Group. Securities offered through Broker Dealer Financial Services Corp. Member FINRA & SIPC. Investment Advisor Representative of Investment Advisors Corp., A Registered Investment Advisor. Material discussed is meant for general illustration and/or informational purposes only and it is not to be construed as tax, legal or investment advice. Although the information has been gathered from sources believed reliable, please note that individual situations can vary, therefore the information should be relied upon when coordinated with individual professional advice