2024 Financial Outlook Key Takeaways

The EFBC recently held a finance seminar with the collaboration of our Strategic Partners and experts from Private Vista sharing their expert insights on the financial market landscape for 2024. This blog post will highlight the key takeaways from the seminar, providing an overview of the financial trends to expect in the coming year.

Key Takeaways:

• Job growth is expected to slow further and the unemployment rate edge higher from its current 3.7% to 4%, although it remains near an all-time low.
• The high level of government and corporate debt could potentially lead to a rise in interest rates. This situation does raise some concerns, as continued participation in these markets could lead to further increases in interest rates, due to the demand for investment capital.
• In the next 5 years, corporate entities will need to refinance over 3 trillion dollars’ worth of debt that is currently at or below a 5% interest rate. This surge in demand for refinancing could further escalate interest rates. Given these circumstances, it is unlikely that the Federal Reserve will be able to intervene effectively in the short term, i.e., the next 6 to 7 weeks. For those seeking insights into future market trends, it’s essential to pay attention to the key market indicators, such as Consumer Price Index (CPI) numbers and academic growth figures. These indicators could provide valuable clues about the Federal Reserve’s potential actions.
• Our experts predict that inflation will continue to decline toward the Fed’s target, likely settling between 2% and 2.5% by yearend.
• Fed is expected to start cutting interest rates in 2024. The majority of these adjustments are set to occur in the period from March through to June. Following this, Fed will likely hold steady through the November election, after which a final cut is likely to occur.
• Presidential Elections typically generate One thing that markets dislike: uncertainty. The year 2024 is not just an election year for the US, but for the world at large. With 40 national elections set to take place worldwide, which implies that the political landscape of nearly 40% of the world’s population and global GDP could potentially be reshaped. This is not merely a matter of national interest; the outcomes of these elections could have far-reaching implications for our economy, markets and us as consumers.
• The financial markets historically experience a rollercoaster ride during election years, with highs and lows. However, once the election results are declared, the markets typically stabilize, regardless of which party wins.
• Regardless of the election’s outcome, one certainty looms large: major changes in estate law are on the horizon. These changes, set to come into effect on January 1st, 2026, will need to be addressed by the incoming administration, be it Republican or Democratic.
• 2024 holds much more than just elections. While our focus may be primarily on the Middle East due to the current situation, it is crucial to consider the importance of trade through these seas. Any disruption in these maritime routes could lead to inflation in the US, restricting the Federal Reserve’s ability to reduce rates.
• The best time to get into the market is when you have money to invest for the long term. If you’re holding onto your cash with plans to invest in new machinery or product development, you’re in a good position. You can park your funds in a money market to earn slightly over 5%, with no risk of a downside. This strategy is especially beneficial for savers, business owners, and retirees who typically like to maintain a cash cushion.

The bottom line

During an election year, it’s common to witness a certain level of apprehension among business owners. This uncertainty often leads to a state of paralysis, where decisions are put on hold and proactive strategies are side-lined. However, it’s crucial to note that such inactivity could be detrimental to business growth. It’s essential to continue implementing innovative ideas and strategies, and to not deviate from the business models that have proven successful previously. It’s advisable to keep up with your regular business practices. Continue to model your financials, budget, and forecast as you normally would. The known is always more comfortable than the unknown. Therefore, use this as an opportunity to channel your energy positively. Keep doing what you’re good at and continue with your business as usual wish a positive mindset.

***Please note that these are only predictions and should be used as a guide rather than a definitive forecast. Always consult with a financial advisor for personalized advice.

Connect with our Strategic Partners at Private Vista

• Mary Beth McLean CFP®, MBA Partner mbmclean@myprivatevista.com
• Greg Bogdan, CFP®, Senior Advisor gbogdan@myprivatevista.com
• Nicole Romito, CFP®, CDFA Partner nromito@myprivatevista.com

President’s Letter: A Call to Action and Sneak Peek of What’s to Come

EFBC members, as we journey through February, it’s the perfect time to start activating the processes and strategies we set in motion during January’s goal-setting frenzy. Understand that setting ambitious goals is just the first step. Execution is where the magic happens. I am currently re-reading “Traction” by Gino Wickman. This insightful book provides a roadmap for turning vision into reality through a structured and disciplined approach. As we absorb the wisdom within these pages, we’re positioning ourselves to execute our vision with precision and purpose.

We are thrilled to announce that the rollout of the Hivebrite online community platform for EFBC members this spring. Our Vice President, Darrin Shillair, and the dedicated EFBC staff are working diligently to set up this app-based platform. The Platform will enhance our member experience and facilitate seamless networking, knowledge-sharing, and collaboration.

EFBC Upcoming events:

1. Thursday, February 8th (Next Week) – Our upcoming Fireside Chat is an event you won’t want to miss! We’ll be joined by guests Eric VanderPloeg, Jay Giddens, and Megan Jerabek, who will provide invaluable insights into the evolving landscape of Name, Image, and Likeness. If you’re interested in participating or know someone who might be, please reach out to EFBC staff. CLICK HERE to learn more!
2. Thursday, March 21st – Save the date! We have an exciting event lined up. Teaming up with new strategic partners PSM Partners and Wintrust Financial Corporation, along with our partner Alera Group, we will be presenting a breakfast club on Cybersecurity best practices. CLICK HERE to learn more!

Thank you for being an integral part of our dynamic EFBC family. Your participation, engagement, and contributions are what make our community exceptional.

Dave Horvath
EFBC President 2023-2024

New Year, New Business Goals: Discover EFBC Members’ 2024 Resolutions

As we bid farewell to yet another year, it’s quite natural to take a moment to reflect on the highs and lows, challenges and victories, milestones and learning curves that we navigated throughout the past 12 months. As individuals, many of us are familiar with the tradition of setting New Year’s resolutions and targets for personal growth, but in the world of business, this tradition offers more than a symbolic fresh start. The beginning of the year is an ideal time for businesses, especially smaller organizations, to revisit their game plan, examine the current scenario, and set ambitious goals for the future.

Inspired by our member’s commitment to growth, we asked few of our valued members to share their business resolutions for 2024, that we’ll share with you today, to provide you with fresh ideas and perhaps motivation for some strategic improvements in your business. So, if you’re a small business owner searching for inspiration to make your own resolutions, you have come to the right place.

1. Implement the Entrepreneurial Operating System (EOS) Meeting Pulse
   Our valued member Dave Westerman, Owner of Carbit Paint, has put a particular emphasis on strengthen the internal communication framework of his business. His resolution is to implement the EOS Meeting Pulse – a strategic 2-day off-site meeting, designed to enhance the effectiveness of team collaboration. This off-site meeting serves as a valuable opportunity for his team to reflect on the past year and learn from their experiences. One of the activities that Dave incorporates during this meeting is team-building exercises, which not only strengthens team bonds, but also enhances the synergy vital to Carbit Paint’s long-term success. Lastly, Dave’s team participate collectively in forward planning, creating comprehensive blueprints with a particular focus on for the upcoming quarter, forthcoming year and the next three years. This is where the integration of new year business resolutions comes into place; setting achievable goals and establishing fresh strategies to accomplish the company’s objectives. “These 2 days are often my favorite 2-days of the year, as it allows us to come up for air, and work “on the business” VS “in the business”” – says Dave.
2. Use the EOS/Vision Traction Organizer
   EFBC’s another dedicated member, Sean Hoffman, Owner of Nuance Solution, is also anchoring his New Year’s resolutions on the EOS, but his focus is the Vision Traction Organizer (VTO). The VTO is an integral part of the EOS that helps to simplify complex strategies and break them down into manageable segments, ensuring that all team members are on the same page with the business’s vision, focus, goals, and strategies. Nuance Solution’s Senior Leadership team has worked over the last 90 days to craft their Vision Traction Organizer – a blueprint for Nuance’s long-term and short-term successes. This comprehensive blueprint includes both their Vision (Core Values, 10-year Target, Marketing Strategy, 3-years Snapshot) and Traction (Annual Plan & Quarterly Plan with Key Objectives and Goals). The intent is to facilitate gradual deployment of this new strategy, rolling out to their entire team over the following 6 months. “Nuance has already seen great benefits from making this commitment and we look forward to becoming a better organization!” – says Sean.
3. Develop New Key Roles Within the Organization
   Ryan Seitz, another valued member and Operations Manager of Kolbi Pipe Marker Co., is taking a different approach to reinforce the efficiency and performance of his business. Ryan understands that as his company grows, so does the complexity of tasks and projects. And as a small business owner, you cannot oversee everything. To address this, one of his New Year’s resolution involves developing new key roles within his organization that align with the company’s growth and diversification strategies. This strategy involves identifying gaps in the current structure, then designating new roles to close these gaps and increase productivity and efficiency.
4. Strengthen Onboarding and Training
   In tandem with creating new roles, Ryan is resolved to strengthen his company’s onboarding and training processes. He recognizes that a comprehensive, well-structured onboarding and training program is crucial for equipping new hires with the tools and knowledge they need to succeed. Better training leads to improved performance and increases employee satisfaction, as employees feel more competent and confident in their roles. Continuous training sessions should also be a priority to keep employees updated with current industry trends and practices. Keep the methods diverse – workshops, e-learning modules, or even mentorship programs – to cater to different learning styles.
5. Boost Employee Satisfaction
   Ryan isn’t stopping there. One of his New Year’s resolutions involves boosting employee satisfaction. He understands that the level of employee satisfaction and engagement directly impacts business success. Happy employees equate to a productive and innovative workforce. Boosting employee satisfaction doesn’t only involve financial rewards but also includes recognizing their efforts, providing opportunities for growth, creating a pleasant workplace, and striking a work-life balance.
6. Tightening up Inventory
   Rounding out Ryan’s New Year’s resolutions is his plan to tighten up the inventory. Staying in control of inventory is essential for small businesses to avoid losses and unnecessary expenses, manage cash flow, and ensure that customer demands are met without delays. To this end, Ryan aims to invest in an inventory management system to automate tracking and reduce human errors. This is a powerful strategy for reducing unnecessary costs and boosting the company’s overall profitability in 2024.

In conclusion, resolutions allow small business owners to redefine their goals, refocus their energies and strive for continuous growth and development. Remember, the key to maintaining your New Year’s resolutions lies in setting realistic, achievable goals, and maintaining a steadfast commitment to achieve them. Stay dedicated, and 2024 will likely be a promising and prosperous year for your small business.