In the current economic environment, family businesses are facing challenges due to the ongoing Trade War. While the situation is serious, with potential difficulties projected into 2026, there are practical steps you can take to guide your business through these times.
The Seabrook Wessex Approach
We use a process designed to assist leaders of lower-mid-market family-owned businesses in managing the impacts of the Trade War and the threats to the sustainability of your company - and the well-being of your family and the families of your team members. Our approach starts with understanding your situation through direct communication. We then collect essential data and work with your stakeholders to evaluate your business's current health and pinpoint any critical issues.
We then partner with you to develop a strategy that aims to improve your business's direction and help prevent the end of your company’s existence.
Your Strategic Toolkit
Here are the core components often found in a tariff strategies and tactics toolkit:
1. Supply Chain Optimization:
- Look for new suppliers in stable regions to diversify.
- Work on better terms with current suppliers to reduce costs.
- Consider local or regional sourcing for a more stable supply chain.
- Manage inventory strategically to control expenses.
2. Financial & Tax Strategies:
- Review and renegotiate contracts to manage financial pressures.
- Enhance cash flow through detailed analysis and management.
- Explore available financing and support programs.
- Use tax incentives and consult experts for a customized tax strategy.
3. Operations & Pricing:
- Streamline operations to cut costs and increase efficiency.
- Reassess product designs for better cost management.
- Adjust pricing strategies to maintain profitability.
4. Market & Customer Focus:
- Expand into new markets to spread risk.
- Keep your customers informed about your business's value.
- Focus on retaining customers through strong relationships.
5. Family Governance & Communication:
- Coordinate family shareholders to align on strategy.
- Improve governance with the help of councils or boards.
A Call to Action
The seas in the next two years will likely be rough. Many family-owned lower-mid-market companies may not make it past the second quarter of 2026. By employing these strategies, you can fortify your family company against the effects of the Trade War, and give your family, your team members, and their families a fighting chance of not becoming collateral damage in the Trade War.
To learn about Seabrook Wessex Group's Tariff Strategies and Tactics practice -
Let's talk about laying out a strategy to take your company through the Trade War and give your family and the families of your team members a fighting chance -
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