Challenging Times - they are a-changing!

I recently read an article written by a Harvard Professor called the "Stockdale Paradox". It was about an interview with a retired US admiral James Stockdale who was held as a prisoner of war in Vietnam for seven and half years. When asked how he managed to survive for such a long time he replied "I never lost faith in the end of the story. I never doubted not only that I would get out but also that I would prevail in the end and turn the experience into the defining event of my life, which in retrospect, I would not trade." When asked which prisoners did not make it out of the camp's, he responded, "The Optimists". They were the ones who said "We're going to be out of here by Christmas, and Christmas would come and go. Then they'd say, we're going to be out of here by Easter and Easter would come & go and then thanksgiving and then Christmas again. They died of a broken heart".

The lesson – never confuse faith that you will prevail in the end, with the discipline to confront the most brutal facts of your current reality.

In my experience, Accountants, as a profession, are good at this - generally conservative by nature but good at long term goal setting. During these times of Covid-19 we must believe that things will return to a new normal – eventually, but it will be a long road ahead to recovery and the reality is that today and tomorrow may be bad days; they must be planned for, and recognized on this unprecedented journey.

What will be the new normal? Will there ever be a vaccine? Social distancing, regular hand sanitizing, border closures, international travel changes, rising unemployment, secondary health concerns – what will be the impact of these changes? On top of these pandemic issues, we are further confronted with world political instability, perceived social injustices, climate change and extreme economic changes driven in part by technological advancement.

So whilst planning for recovery by all small business is imperative, due to the number of unknown's, it can be a daunting task. Creating an adaptable plan that is flexible enough to allow for change but rigid enough to see through the tough times ahead can be difficult. My advice – keep it simple and seek support from those around you that know the business and can contribute to its success. Think back to what your goals and values were in January 2020 and use this to rebuild the business. Use the Stockdale paradox – have faith whilst confronting reality.  And take advantage of the expertise you have in your corner; your accountant is well placed to assist.