Q&A: Can You Recession-Proof Your Business? What's Your Zombie Apocalypse Survival Plan?

Confessions 5.6.25 Q&A Mary and Layci
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Mary: [00:00:00] Welcome to Confessions of a Terrible Leader, where real leaders share the raw truth about the lessons they learn the hard way. So you don't have to join our host, Layci Nelson, founder of Transcend Leadership Collective, and former terrible leader On this podcast, we invite you to step into the confessional and get real with the messy stories and behind the scenes reality of leadership.

Let's get to it. Hello friends, and welcome back to Confessions of a Terrible Leader. I am your friendly neighborhood podcast producer Mary Skop. Back here today with founder of Transcend Leadership Collective, Layci Nelson. Layci, welcome once again to your very own show.

Layci: And once again, these are some of my very favorite episodes to record, so thank you, Mary.

Mary: Yes, absolutely. So we're gonna dive right into the very simple, not complex topic, not complex at all, topic of what is recession,

Layci: right. [00:01:00] Right. It's so easy. It's so simple. Yeah. It's so simple. And we're not, economists do not claim to be economists, so we're no giving you a lay person's understanding.

Business owner to business owner. Right. Research I'm doing of just simply defining what does it even mean? Yep. What is recession, right? And then we'll go from there.

Mary: Yes. Very much a B2B approach. Mm-hmm. Coming alongside you in your business and all of the uncertainties and wondering, right. We were just talking about how we don't even know what's gonna happen next week.

Let's just get into it. So Layci, we hear this term. Oh, heading into a recession. Heading into a recession. We hear this all the time. Right? So give me some basic brass tacks. What exactly are we talking about?

Layci: Well, recessions are. Part of, if you look at the history of any country, it's part of the realities and the ebbs and flows, and there's things that can bring on recessions, common characteristics, but generally what it [00:02:00] is, by definition, it's when our nation has a fall in GDP for two quarters in a row.

So gross domestic product falls for two quarters in a row. That is. What it is, two quarters back to back of mm-hmm. Dip. Yes. And that is technically then recession. The average recession lasts in America 11 months, although the longest a recession has ever lasted has been five years of continuing downward trend.

And the shortest, I think was two months. Okay. So just a blip on

Mary: the radar? Yep. Okay. And a quick recovery. So lots of variables within that definition of what is a recession,

Layci: right? And different industries are going to experience different realities, right? So people that are listening to this podcast that are in produce farming, they may be thinking we're actually coming back out, or we can see the light at the end of the tunnel.

Or we've been in recession for a while now as an industry. We don't know what light you're talking about. Depends on [00:03:00] multiple factors, but their industry can definitely be struggling before the entire nation is struggling. Sure. That is a reality I want to address is for some listeners, they're like, this isn't unfortunately new and we've been here way longer than we would like to be.

Right. For others, it is their first rodeo with the dip. Right. Being talked about as are we in it? We don't know yet, is. Depends on who you talk to, right? Some economists are saying, and this information is two weeks old, so take what you will, right? The history at the time of recording on April 17th, this is two weeks old information, right?

So some economists are saying there's a 35% chance that we're gonna hit recession in 2025. Other economists are saying it's up to 60% chance, and it really just with so much flux. Day to day. The basic answer is, we don't know, but let's be ready. Yes. If we can. Right? Exactly.

Mary: Which brings us to our next point, and also by the way, because [00:04:00] of what a very deeply tiered topic this is, we will be revisiting this from time to time as fresh information comes to light, especially in ways of how business can be supporting other businesses.

So yeah, let's talk about, okay, we cannot control whether or not we're dipping into a recession. As you stated, some industries tend to be more of the canary in the coal mine mm-hmm. When it comes to recession. But give us a couple of broad strokes of, we like to use the term how to recession proof your business.

Right, right. But with all the caveats upon the caveats of, well, okay. How can we weather the strong Yeah.

Layci: What do we know? Right? Right. So what do we know about the businesses that have made it through recession dips before? What are they doing? And ours made it through the Covid dip, thankfully. So not only speaking from experience, but also looking at, okay, what's happening?

When we can look back, look at the research, what are the commonalities of the businesses? That do well, and I'm looking [00:05:00] specifically not at the monsters. Coke is not going anywhere. No, they're fine. The shareholders might not get as much money, but they're gonna be here. They're not going anywhere. They're gonna be okay.

Anywhere. Yeah. So we really wanna speak to those that do question. Are we gonna be here on the other side? The ones that aren't as established don't have that giant cash flow that helps tremendously during this time. What do you need to have in place to be able to come out the other side and not just survive?

I will be audacious and say even come out the other side, prepped to thrive. As soon as the economy turns again. Mm-hmm. It will turn again. We just dunno when. Yeah,

Mary: it always does. Yep. Eventually.

Layci: So what do you do? What are these recession proof or as we like to call it on our team, because it's just way more fun.

What is your zombie apocalypse survival plan? Yeah, yeah. Very important. So we actually are ridiculous and took up a framework of how do you survive a zombie apocalypse. Right. [00:06:00] Literally, how do you survive one and took that framework and adapted it to how to survive recession because it's just way more fun.

It's, you gotta talk about this hard stuff. Let's figure out some way to infuse a little bit of at least joy and ridiculousness into it, right? Yes. Always helps. Always helps. Always helps. Also given my family of origin, genetics, I don't know what it is, but dark humor. Oh yeah. Oh my number one coping mechanism.

Same, same,

Mary: same. It's like deflecting trauma with humor. Absolutely. Let's go. Let's do this,

Layci: right?

Mary: Yeah.

Layci: Okay. So, oh yeah. Inappropriate comments and hard times are like my specialty. Yes. So anyways. Back to the zombie Apocalypse survival plan here, our framework. Yes. The first thing in any good zombie apocalypse plan is you need to have early warning signs and assessment systems that you're looking at.

So basically, don't keep [00:07:00] your head in the sand. Pay attention, pay attention to what's going on in your industry. You wanna be looking at what is happening with your competition, with your collaborators. How are they doing? And hopefully having those relationships where there can be reduced bluster and people can just be honest.

If we go into this armored up and not looking to how can we honestly help one another that's not gonna serve anyone?

Mary: Mm-hmm.

Layci: Really just that honest conversation. Paying attention also, of course, to the markets. And looking at and figuring out who do you trust for economic projection and why do you trust them?

Mm-hmm. I'm not gonna tell you who you should trust and why you should trust them, but I'm gonna say, you better be able to answer that question. Mm-hmm. And do it with wisdom. And it's always great to have a couple of sources that are respected and proven and have a track record. Right. Yeah. And aren't somebody in their mom's basement, so Right.

Pay attention [00:08:00] and then risk level evaluation, right? Like how serious is the threat? Are the zombies at the door? Are they a town over? We also wanna have a communication protocol. How are we gonna communicate with others? Yeah. Now in the fun of a zombie apocalypse, it's like, okay, the radio towers go down and we don't have satellite anymore and blah, blah blah.

Right? In this instance, maybe not that extreme. How are you going to stay connected? Do you have systems for regularly checking in? Do you have a group of industry people that you are a part of? That are specific to your industry or your adjacent industries where you are connecting, you're talking about it and you're able to communicate open and honestly to get a feel for what's going on, whether it be supply chain questions or questions about sourcing or, I mean, talk to people.

Yes. Don't live in a vacuum right now. Don't ever, but really don't live in a vacuum right now. Yeah. Find a group of like-minded people with enough diversity [00:09:00] that there's good conversation. Should say that people that you trust. A professional association, whatever it is, where you can just have open conversation.

That's number one. That's your early warning system. And also support network is gonna be critical. Yeah.

Mary: You know, as you're describing this, my mind immediately goes to various apocalyptic movies I've seen. So I'm trying to like stay, uh, I'm like, okay, talking about business, we're talking about, I know, I know.

Layci: 28 days, my 28 days later. Oh my

Mary: gosh. Okay, listen. Brief Rabbit Trail. I saw that in the theater. That was a tremendous mistake I was in. What were you thinking? I wasn't, I know you. How old were you? I was like 20. Okay, okay. 19, 20. So, okay. I went to like the nine 30 showing. Yeah. I was so scared when I was driving.

Hope it was, and I lived in the country, so we're driving through cornfields and all that, and I'm like, well, I'm gonna die before I get to the front door. This is it. This is it. I'll be [00:10:00] devoured. Yep. But I survived. And speaking of survival. Yes. What are the hallmarks? What are the hallmarks? Okay. Of businesses who make it, yeah, yeah.

Who make it? Who crawl outta the hole? What are the hallmarks of those businesses?

Layci: Well, clarity is critical.

Mary: Mm-hmm.

Layci: Understanding people need to have excellent communication because. Excellent communication during these times, and extreme clarity during these times, and I'll expand on that in a second.

Sure. Is what underpins the ability to be flexible and be adaptable so you can pivot quickly when you need to, to respond to market conditions, what your consumer needs during this time, all of the things. So when you have a team that has really good communication skills. They're just way more proficient, efficient.

The speed is incredible. When a team can communicate well and cross-functionally, departments are communicating and pulling multiple voices in, and it's an [00:11:00] attitude of us versus this challenge in front of us,

Mary: right? If

Layci: you're wasting time in fighting ever, it's not successful. But if you're wasting time infighting during a market downturn.

It can literally kill you. Mm-hmm. Because you have to be able to be flexible, to be adaptable, to have everybody more than ever rowing in the same direction, have that clarity of vision and really invest the time that it takes to have the clarity of roles and who is ultimately accountable to which functions in the organization.

Starting with the C-suite, with the executive team. There needs to be absolute clarity, and then that C-suite needs to go back to their teams from that leadership table and provide absolute clarity around key functions. What's our main goal right now? What am I accountable to for our department? Within my department, what are each of you gonna be accountable to?

So for example, let's say that you are ops, you're in charge of [00:12:00] ops on a packing line, just randomly chose that one. So ops on a packing line, and you know that customer satisfaction is going to be even more critical. They're paying more for the fruit. There's so many factors at play and you know that there's two or three things that are gonna be the really important things that your leadership team has identified.

Production. We need to nail this now. If you go back in and just tell your team, we gotta nail this, guys. That's a good start. Better than flying blind. Right. Knowing what you're going for versus just, well, we just do a good job every day and we work as hard as we can.

Mary: Yep.

Layci: People need more to aim for than that.

Right. But once you have identified those things, then it's getting down to the specificity of every person on that line needs to understand how their work contributes to that larger goal and what mm-hmm. To prioritize. Mm-hmm. So if you are sending a message that speed is [00:13:00] everything, you're likely going to have more damage, which may not be what you actually need as their number one priority right now.

Mm-hmm. So really thinking through what are we communicating? Are we communicating it? Especially if it's a pivot. If speed typically was your number one factor mm-hmm. How fast can we get it out the door? How many thousands and thousands of whatever you're producing. How much can we do it in an hour? And there's a larger margin for quality assurance issues that are, of course, the goal's always zero, right?

Yeah. Goal's always zero to have zero customer complaints, right? But we all know in reality, there is a margin where you're gonna start freaking out. Yeah. So if you're gonna shrink that margin, you have to communicate that, and you also have to communicate that you understand there's a potential cost and speed that's gonna come with it.

But what is the priority right now? Because when we go in and we just tell people it's all important, pressure's on, right? That does not work. [00:14:00] Yeah. So if you want to come out the other side and be in a place that you are set up to thrive, communication, practice it now. Even if your industry is doing great, the best time to practice these skills are during the times before the pressure hits.

Right. Yeah. Everybody should have a crystal clear understanding of what the most important things are in their department and what their contribution is to that most important thing, and exactly what they're being held accountable to. Across the board with transparency leaders, we need to be sharing what we're being held accountable to as well.

Mm-hmm. With our team members. Team members. Yeah.

Mary: There you go. Awesome. So many common themes that we reiterate in past podcasts, the material that we use in our coaching, because these things are really the non-negotiables of keeping things healthy and running. Yeah. So this has just been a very brief Yep.

Large [00:15:00] brush strokes. We're absolutely gonna revisit this topic. Yep. Also, listeners and viewers, I think it would be really fun if you have developed your own zombie apocalypse plan, so to speak, for your own business. These are fun and helpful things to share, so we're not alone in all of this. We are connected in all of the collective work that we're trying to do, so feel free to connect and share.

Yeah, it would be very interesting. Yes, we would love to know. We will absolutely revisit this topic in future q and as because as we know, things are going to change and keep changing. Yep. Layci, do you have any final words to leave our listeners and viewers

Layci: with? I wanna just iterate we're not financial experts.

Yes. On this. What our expertise is, is the human connection and helping employees and leaders figure out. As a leader, how do you know what it takes to actually be worthy of being followed? And right now is when you get tested, it's easy to be a much easier, [00:16:00] not easy, much easier, right? Easier, yes. To be a leader.

People actually want to follow when times are good and there's not uncertainty and pressure, you're gonna get tested if you're not already being tested. Now these times. Should your industry be one that is feeling the pressure and people are looking at you going, what's next? What's next? What's next?

Right? What are we doing? These are the times that you get to test your skills, and it's okay if you're like, I don't exactly know what I'm doing right now. Mm-hmm. I wanna be honest. Nobody actually does, but we do have some fundamental things that can help you that we do know work for increasing people's.

Sense of safety, increasing your own peace of mind and wellbeing during a time when you do have all the eyes on you, right? Mm-hmm. Like you are being watched, right? Yep. Take that. I hope that's comforting.

Mary: So be warned. No. Okay. Be warned. Yeah. Yes, beware. Beware.

Layci: You need to [00:17:00] know that it counts your leadership right now, it's always impactful, but it is exceptionally impactful in times of uncertainty.

And you don't have to do it alone, and we can help navigate those tricky relational, interpersonal. The small things that really turn out to be the big things. Yep. With your teams, you are not in alone. Right? You're not alone and ask for help. Yes. Or knows I ask for help. Yes. So I have my own crew of coaches that I lean on.

'cause you can't always read the label from inside of the jar. Oh my gosh, yes. You can't ever read the label from inside the jar, but. I have advisors. I have my own business coach that I lean on and consulting and executive coach. We practice what we preach over here. Yep, absolutely. Now is the time.

Mary: Yes.

Right before things go into full on zombie apocalypse

Layci: and maybe we'll avoid it and if we do, fantastic. Fantastic, fantastic. These are the practices that are only gonna make you. It's never a bad investment. Right,

Mary: right. If it's anything that's going to [00:18:00] make you a better, stronger leader, then that's great.

Yes. Nothing has been missed. Yeah.

Layci: ROI all good. Things will just be potentially a lot higher right now because the stakes are higher. Right.

Mary: That's so true. Awesome. Well, thank you Layci. Thank you for your time. Yeah, as always, and listeners and viewers, thank you for being here. We really appreciate it. And until next time, go manage like a leader.

Thanks for listening to Confessions of a Terrible Leader. If you're feeling brave and have your own terrible leader story that you'd like to share, head over to Transcend Leadership collective.com/podcast to fill out a guest application. We'd love to hear from you. Confessions of a Terrible Leader is hosted by Layci Nelson and produced and edited by Fixation Point Productions.

Music is by Leif Olsen and Mary Skop from the band. The number of months Confessions of a Terrible Leader is a. Free leadership resource offered by Transcend Leadership Collective. If you are ready to refuse the limits of average leadership and join the leadership revolution, visit transcend leadership collective.com to [00:19:00] check out our offerings for engaging workshops, strategic planning, and more.

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