The Age of Consolidation: Sustaining Your Business Model During Difficult Times

If there is a single trend to define the financial markets over the last week or so, it is the consolidation of asset class performance and price points. Much of this has to do with a lack of major data releases (since the latest Fed policy meeting in the U.S.), with

global investors having instead turned their attention to the latest Trump-administration policies concerning tax relief.

So although the majority of the world’s leading indexes secured moderate gains during the course of the last week, there was a noticeable absence of volume while a clear theme for consolidation emerged as the economic (and geopolitical) climate steadied slightly. The DJIA and the SPX indexes rose by 0.7% and 0.52% respectively, however, and this minor growth is expected to continue indefinitely.

How Businesses Are Set to Follow the Example of the Financial Marketplace

We have also seen a shift towards consolidation in the UK banking and finance sector, where lenders are reducing savings rates while it is largely expected that mortgage rates will increase incrementally during the second financial quarter. This is a trend that is also evident in the U.S. and Australia, while it is indicative of lenders who are keen to optimise their capital income during uncertain times.

As ever, the prevailing outlook of the marketplace and the trend for consolidation is something that is having a profound influence of businesses, particularly in terms of how they scale and manage their underlying models. After all, scope and planning are required to ensure that any business model can survive periods of consolidation and stagnation, while the processes of securing funding and managing investments must also be reconsidered.

This is a daunting prospect for small and medium-sized ventures with minimal financial resources, so it is important that these entities seek out advice and take practical steps towards optimising their wealth in the current climate. The first step is to solicit some expert guidance, with service providers such as WHIreland well-placed to help consolidate your companies’ wealth and grow this in-spite of the prevailing economy. These firms often consolidation is unison with major banks and lenders, ensuring that they have real-time market knowledge that can optimise your resources.

What Else Can You Do to Consolidate and Manage Your Wealth?

Another key piece of advice is to consider creating a leaner business model, in preparation for a potential stagnation in turnover. This will enable you to maintain a healthy profit margin, optimising your businesses wealth and resources as a result.

With a leaner business model and an expert wealth management partner, it is possible to adapt your commercial model and empower it to succeed during austere economic times. This is crucial during a period of consolidation in the financial markets, as this tends to dampen consumer and business confidence over time and can lead to a period of widespread stagnation.