Next Level Pros Podcast Episode #145: Why Playing It Safe Might Be the Most Dangerous Move
Release Date: April 17, 2025
Introduction
In Episode #145 of the Next Level Pros podcast, host Chris Lee delves into the pressing concerns surrounding the looming recession predicted for 2025. Joined by co-host Daryl, Chris navigates the turbulent economic landscape marked by significant stock market drops and political upheaval. This episode offers invaluable insights for entrepreneurs and business owners on how to navigate uncertain times, adapt to change, and emerge stronger.
Recession Predictions and Current Economic Climate
The episode opens with Chris Lee addressing the palpable fear of an impending recession. Highlighting the recent drastic drop in the stock market—“the stock market has tanked over 4,500 points in the last four days” [00:00]—and the initiation of reciprocal tariffs by Donald Trump, Chris sets the stage for the critical discussion ahead. He cites JP Morgan’s alarming forecast, stating, “There is a 60% chance of a complete recession in 2025” [00:00], underscoring the urgency for business owners to act proactively.
Impact on Business Owners: The Dilemma of Staying Afloat
Chris and Daryl explore the myriad of questions troubling business owners: whether to keep operations running, wind down, or double down on efforts. Chris shares real-life concerns from community business owners grappling with “the overall macro economy is hurting them” [01:15]. Daryl echoes these sentiments, noting, “people are really concerned with what to do, and the concern comes from what used to work isn't working anymore” [01:34].
Adaptation and Embracing Change
Central to the discussion is the necessity of change in business practices. Chris references the classic book Who Moved My Cheese? to illustrate the importance of adapting to new circumstances. He explains, “Everything's got to change” [01:50], emphasizing that clinging to outdated strategies can be detrimental. The hosts stress the importance of overcoming fear and being willing to explore new avenues: “What would I do if I had no fear?” [03:17].
Strategies for Recession-Proofing Your Business
Chris and Daryl outline three primary levers to recession-proof a business:
- Raising Prices: “You can probably charge more and you don't even realize it” [12:05].
- Increasing Sales: Emphasizing the need for active sales efforts, such as cold calling and door-to-door sales, to boost revenue.
- Cutting Expenses: Making tough decisions like reducing staff or selling off assets to streamline operations.
Chris elaborates on these strategies, urging business owners to “roll up your sleeves and get back to work, whether it's knocking doors, making cold calls, posting on social media” [14:16].
Overcoming Fear and Mental Barriers
A recurring theme is the psychological aspect of business management during crises. Chris highlights the paralyzing effect of fear and the importance of mental resilience: “We get paralyzed by fear, and so we do dumb things” [04:04]. He encourages entrepreneurs to adopt a fearless mindset to make bold decisions that can steer their businesses toward survival and growth.
Leadership and Employee Transparency
The episode underscores the critical role of transparent communication with employees during tough times. Chris advises, “Creating transparency in your organization” [16:16], suggesting that honesty about the company’s struggles can foster a collective effort to overcome challenges. He shares examples of how transparent leadership can either galvanize a team or lead to the departure of non-committed members.
Daryl adds, “If people aren’t here fighting for the business, they are hurting your business” [16:29], reinforcing the idea that transparent communication can strengthen team bonds and commitment.
Case Studies and Real-World Examples
To illustrate their points, Chris and Daryl discuss several real-world examples:
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George Foreman’s Comeback: Highlighting Foreman’s return to boxing at an older age, they emphasize the power of resilience and taking on “the second act that can be so much bigger than where you're currently at” [09:35].
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Vivint’s Strategy During the 2009-2010 Recession: Chris recounts how Vivint successfully navigated financial woes by engaging employees in equity investments, turning a dire situation into an opportunity for growth: “They went... to get equity from their employees, and those guys made so much money” [20:37].
Building a Strong Company Culture
The hosts stress the importance of maintaining and building company culture even before a recession hits. Daryl notes, “you can't wait until the recession hits to try to bring morale and culture together” [20:37], advocating for ongoing efforts to foster a supportive and resilient organizational culture.
The Power of Underdog Stories and Strategic Partnerships
Chris and Daryl explore the motivational power of underdog narratives, explaining that people naturally root for the underdog: “Everybody loves an underdog” [17:50]. They also discuss the value of forming strategic partnerships during downturns, suggesting that collaboration can create better opportunities for all involved parties.
Conclusion: Thriving Through Adversity
In wrapping up the episode, Chris and Daryl reiterate that surviving a recession requires a proactive and adaptable approach. They encourage business owners to:
- Sound the Rally Cry: Unite the team with a common goal and transparent communication.
- Focus on Revenue-Generating Activities: Prioritize actions that directly impact the bottom line.
- Embrace Change and Overcome Ego: Let go of outdated practices and be willing to take on roles that drive the business forward.
Chris concludes with a powerful message: “He who survives is ultimately going to thrive when the economy comes out on the back end” [22:00]. This episode serves as a crucial guide for entrepreneurs aiming to navigate the stormy waters of economic downturns and emerge stronger on the other side.
Notable Quotes
- Chris Lee [00:00]: “JP Morgan just recently said a 60% chance of a complete recession in 2025.”
- Daryl [00:56]: “Regardless, there is change happening.”
- Chris Lee [03:17]: “What would I do if I had no fear?”
- Daryl [08:27]: “52% of Fortune 500 companies were started in a recession.”
- Chris Lee [16:16]: “Creating transparency in your organization is key.”
- Daryl [17:07]: “We are wired to be freaking fighters. We are wired to survive, not to die, to Go and make it happen.”
- Chris Lee [21:54]: “Focus on revenue-generating activities... that's what's going to move the needle.”
Final Thoughts
Episode #145 of Next Level Pros is a masterclass in crisis management for entrepreneurs. Chris Lee and Daryl provide actionable strategies, backed by real-world examples and psychological insights, to help business owners not just survive but thrive in the face of economic adversity. Their emphasis on transparency, adaptability, and mental resilience offers a roadmap for turning potential threats into opportunities for growth and innovation.