It was the late 1970’s: Inflation was in the double digits, fuel prices at record highs, Kent State University massacre, Jimmy Carter was President, a hostage crisis in Iran, tensions escalate in the Cold War, and the Soviet Union invaded Afghanistan. The nightly ritual was the burning of American Flags, and the leader of Iran was stating that Americans are too weak to do anything. The truth…he was correct; psychologically America’s confidence was at a historic low, even the President referred to our diminished confidence level in many speeches. It was not a good time in American history.
However, in the backdrop, no one would have ever imagined that a group of College Athletes from the Midwest and East Coast would ignite the Country’s pride with a sporting event…The 1980 Winter Olympics in Lake Placid, New York. In Hockey, the Soviets were unbeatable, some say the best sports team ever assembled, winning 5 of the prior 6 Gold Medals. Leading up to the game the U.S. team was unbeaten and had to beat the Soviets to advance to a medal round. It was a modern-day David vs. Goliath, but this time it was played out on a sheet of ice in a small town in upstate New York. The game was played…and with 3 seconds remaining, the score USA 4 and USSR 3 the announcer says those now historic words, “Do You Believe in Miracles.” Americans celebrated in the streets…and at this very moment the confidence was back (later, Sports Illustrated would name it the #1 sports moment of the century).
As in sports, when operating a business, the challenges that come your way (COVID) may seem - at the time - to be overwhelming and a drain on your confidence. However, without confidence in what you’re doing - more importantly confidence in your business plan - you’re likely to fail. When uncontrollable events take place in life as we’ve all been witness recently, having the ability to revisit the one area you can control, following through with your plan, is vital to your businesses long-term success.
Following a plan to run your business in times of uncertainty is akin to following a comprehensive financial plan to run your personal life when equity markets turn as volatile and confusing as they have over the past year. Even the most patient investors may come to question the wisdom of their plan. On that note, a question…Do I have a plan? We’ve found that many successful business owners have a great business plan; unfortunately, they have never sat down with their financial planner to craft a comprehensive financial plan.
For those that are unfamiliar to what a comprehensive plan may look like - the plan should encompass the following areas: Estate and Business Succession Strategies, Retirement Income and Investment Planning, and College Planning for children or grandchildren. So, no matter what challenges may continue to arise – which is one certainty you can count on in life- like the 1970’s, out of a crisis a miracle of confidence often begins with a plan.
Advisory services are offered through Melone Private Wealth, LLC (“Melone Private Wealth”). Advisory services are only offered to clients or prospective clients where Melone Private Wealth and its representatives are properly licensed or exempt from licensure. For additional information, please visit our website at meloneprivatewealth.com
The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your attorney or tax advisor.
No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment.
All investments include a risk of loss that clients should be prepared to bear. The principal risks of Melone Private Wealth strategies are disclosed in the publicly available Form ADV Part 2A.