Your Business Can Thrive During Economic Downturn. Here’s How.
With the talk about the town being all doom and gloom we thought it would be good to look at how your business can actually thrive during a recession or challenging economic climates. The key is for agile businesses to be well-positioned to be able to seize opportunities as they arise.
So what are these opportunities?
Firstly, let's look at where the opportunities may lie for you:
Competitors selling out or folding. Though we do not want to celebrate the downfall of another, the reality is during a recession there are a lot of businesses who simply cannot make it through. If your competitor is looking to get out, you may be able to buy them out at a very good price which will expand your market reach quickly and sure up your position for the future.
Suppliers and contractors may offer discounts to keep their own cash flow going. If you are sourcing goods from suppliers who do this, it is a good time to purchase for the future.
With the current staffing shortage, now is a good time to be keeping your eye out for skilled workers who may be getting laid off due to cost-cutting.
How can you get your business ready?
Key considerations to ensure you are positioned correctly:
Access to capital. If you are fairly secure in your current financial position, seek out further access to capital so that when the opportunities present themselves you are able to act quickly to make the most of the timing. Banks are not the only option for capital. Join our next webinar to find out more about accessing capital at this time HERE>
Understand your margins and know how the opportunities will further enhance your profit margins or hinder your growth. Not all revenue is created equal. Any new development for your business should have strong unit economics and align with your strategic goals.
Carefully steward your ignorance. This means you often can’t see the downside when options abound. Having an objective point of view from a good business advisor to help you understand your unit economics and point out your blind spots will be vital for managing your business during this time. CONTACT US if you’d like to discuss how we can help you.
While recessions affect some industries more severely than others, there are opportunities for all businesses to adapt to the changes that normally happen during an economic downturn. Now is the time to be proactive in your business management and not give in to the media frenzy.
