When The Going Gets Tough, We Come Together.

It’s here.

Those of you who follow me on X know that I’ve been through a couple full market cycles (recessions and the bull runs that follow them) and it’s pretty clear that we’re easing our way into a recession.

People are hurting.

Exactly six months ago I said that it “takes about two years after a hiking cycle to see a recession [and] we are about 6 months away from that.”

Ladies and gentlemen - we’re here.

People are selling gas stations because they can’t afford to invest in them and even run them at times because of all of the cost hikes in the past 3 years. Buyers are having trouble getting financing and even raising enough money for down payments. Consumers are spending less inside our stores. People are not getting full tanks of gas. They are buying higher priced items, but that’s the ‘lipstick effect’ - they’re not replacing their trucks, so they’ll get a $4.99 energy drink. Every small business is seeing a record-high number of job applications. In my fuel hauling business, we have a waiting list for drivers. Two years ago it was impossible to find drivers.

So let me share some thoughts as someone who’s gone through the ringer and lost his shirt before.

And if you think I don’t know what I’m talking about, check out just one of my many Recession War Stories:

My thoughts on recessions split into two categories: surviving and taking advantage of a downturn.

That’s really the hardest thing. On the one hand you have to be super conservative and operations-oriented so that you’re around in 5 years, but you also have to make sure you can take some action and be ready to pounce on opportunities when others are cash-poor and desperate to take your money.

So here are my thoughts:

• get your savings rate up as much as you can

• sell what you don’t need to shore up some cash - you’ve got a spare car out back you’ve intended to sell but haven’t gotten around to it? Now’s the time to get some cash for it. Same goes for anything that’s taking up space

• renegotiate all of your overheads - sub-contractors, insurance, deliveries, etc.

• reach out to friends who might have cash and talk about opportunities - the truth is that most people who made a lot of money on assets bought them right after a downturn.

• Ask your local bankers if you can still get lines of credit open so that you have some cash positions if there are opportunities to buy.

Because you guys know the Gas Man well, it won’t be a surprise to you that I believe that both of these goals - Surviving and Thriving, by taking advantage of opportunities to buy great assets at discounts - require us all to come together.

To come closer when times get tough. To partner up. To help each other. To share information. To be there to support each other. True community. True service. Someone might have a piece of equipment you can borrow instead of renting or buying. Someone might have a store they can’t afford to restart that you can put sweat equity in. Someone might need a job that you can provide or money they’re waiting to invest that can tie you over for 6 months.

We have to come together, to get through tought times and work together to take advantage of big opportunities. And the time of opportunites are coming.

And in order to do any of this, we need to communicate, to be out there, to talk to each other.

Very often in tough times you’ll see people becoming recluses, hiding from others, avoiding conversations. If I can give any of you any advice it’s to do the opposite of that. Call people. Meet with people. Swing by to visit folks you know on your way home.

It’ll be noted, appreciated and remember.

As always, don’t forget to check out what we’re doing over on YouTube.

Till next week Gas Nation.

GBG