Reviewed by Jan 05, 2021| Updated on
Hiccup is a slang term within a longer-term plan, goal, or trend for a short-term disruption. A hiccup may be used to describe a particular company's business actions, a downturn in stock prices, or the stock market as a whole. A hiccup is not necessarily representative of a greater trend but is considered an aberration.
One of investor's biggest challenges is to determine what merely a hiccup is and what a harbinger of things to come is. If a company misses one-quarter sales estimates, this may be an isolated event, or it may be the first of several mistakes that highlight a core issue in the business model.
In accounting, the word "hiccup" also refers to a business's financial decline. Sometimes, the term also refers to a drop in results of industry or company due to other causes, such as poor technology, known as technology hiccup.
There are many causes of hiccups, such as greed and poor marketing. However, business leaders can prepare themselves to handle these downturns better when they come in by implementing the right strategies.
Greed, poor technology, poor market awareness, low or no visibility on social media, and over-hiring are some of the factors that can cause hiccups. Hiccups may occur when a company spends too much on costly office supplies and other luxuries instead of concentrating on goods and marketing. That can cause a start up to blow the budget in the game early.
Business leaders can help by keeping the growth in mind to avoid/heal hiccups. In so far as they provide lessons that business leaders can then build on for future success, this mindset can extend even to the hiccups themselves. Business leaders must also plan themselves for many different future scenarios.