Last night I mowed my lawn and thought about tariffs. Over the last week I've talked to countless CEO's and industry leaders. I've had conversations with people in DC and in China. Just like everyone else, I don't know what the future holds. But we are clearly in a new era. The new tariffs create a lot of costs that will need to come from somewhere. For my company, we expect to pay almost $40,000,000 in new tariffs this year. Interestingly, we have invested millions in domestic manufactuing over the last few years. For many nuanced reasons we still don't have the ability to produce a large percentage of our products in the US. I know this to be true for many companies. It is not a lack of willingness to make things in the US. It is a lack of financial viability. There are only three options for companies to manage these new tariff costs: -Raise Prices -Cut Expenses -Accept Lower Profits In every business there are essential costs and costs that make life easier. There are business activities that the company needs to survive and initiatives that contribute at a nominal level. There are softwares that you cannot live without, but there are many more that make the work easier and less monotonous. I don't know the road ahead, but I know it is going to be bumpy. CEO's are going into wartime mode. They are going to be looking to slash operating expenses. They aren't going to pay others to do something they can do themselves. They are going to be spending money on essentials. It is going to be a tough few weeks for many service providers. There will be a lot of churn and some massive price reductions. And profits are going to be hard to come by over the next year. Recent studies have shown that 50% of the discretionary spending in this country comes from the top 10%. That top 10% owns equity in private and public companies. Whatever your opinions about income distribution in America, that group currently drives the discrectionary economy. That top 10% is going to spend significantly less in the months ahead. We are likley headed for a recession. To survive and thrive in the months ahead you are going to need to drive results. CEO's are going to have to make hard decisions to protect their company from going under. My advice to every person reading this who is not a CEO: Be Proactive! Seek feedback about how you can be producing the value your employeer needs. Don't assume that "no news is good news". Have a bias to action in looking for ways to contribute, take on more, and find effeciency. This period is going to be hard, but there will be some great things that come from it. I have been an entreprenuer for 16 years. I would estimate that 80-90% of the best ideas I have seen implemented were the result of challenging business climate. Pressure helps us to focus and make the needed tough decisions. Lack of resources spurs creativity and new approaches. During easy times there is a build up of things that need to change, but because there is no pressure to take action nothing happens. When the going gets rough it leads to decisons that were long overdue. For most of the last 10 years I have paid someone to mow my lawn. But recently I decided to start doing it myself again. As I was mowing, I kept coming back to one thought: We are entering the "mow your own lawn" era for businesses.