The idea of growth during an economic downturn is counter-intuitive. At these times, many companies think about cutting costs, reducing headcount, etc … We get it. It’s human nature to worry, and yet, certain companies will seize the moment to expand.
Many companies bucked the 2008 recession and expanded, including Amgen, Old Dominion Freight Lines, Walmart, and Dollar Tree.
And then there are true disruptors that ride a wave of innovation during challenging times. Think about Airbnb and Uber, which were founded in 2008 and 2009, respectively, and continue to have a significant influence on the hospitality and transportation sectors.
My advice to your organization: Don’t automatically decide to keep it safe during tough times. The right strategy for you might be to grow organically and/or inorganically.
At Concepts Rise, we’re in the business of helping management teams grow revenues in good times and bad. We help companies reduce customer turnover, remove operational challenges, and break through the barriers to success.
Call me if you’d like to discuss the right strategy during an economic downturn. These are some of the themes I discussed on a recent podcast called Test. Optimize. Scale.
During the podcast, host Jason Fishman focused on something I said: “The business of technology hasn’t changed.” I’ve worked with technology companies for more than two decades and to this day you still need to scale, have sound operations, as well as know your customer to generate more revenue.
What has changed is where companies prioritize their efforts. More management teams are focusing on customer-centric experiences. Everything is built around supporting the customer, so the goal becomes understanding who the right customer is for your business.
Following are some other things to keep in mind to grow your business in this environment:
- The Power of Planning. Ever since you were in grade school, someone has told you to plan for the future! Knowing that we’re close to entering a recession should help you think about your company’s direction and planning for what comes next.
- Expand Cash Position. Cash is king and having access to it will help you pivot when the time is right. There are many vehicles out there to enhance liquidity, so just make sure you choose one that aligns best with your growth trajectory.
- Innovate. Innovate. Innovate. I know I said it three times, but I can’t stress innovation enough. This iteration of the economy could be the Goldilocks moment to take your company to the next level. Or maybe it’s simply an opportunity to start a new line of business that helps ensure the health of your organization in the future. Regardless, please innovate. Now!
- Consider a New Sales Process. We believe in the 80/20 rule, also known as the Pareto Principle, meaning 80 percent of consequences come from 20 percent of causes (the “vital few”). So, if 80 percent of a company’s sales come from 20 percent of its clients, building marketing and sales channel strategies that reach the right clients is imperative.
- Remove Operational Challenges. We’ve all heard that doctors are the worst at taking care of themselves. Guess what? Same goes for management teams who are focused on taking care of customers. Sometimes they forget to take care of their operations.
Please feel free to reach out if you’d like to discuss how we can help you accomplish any of these activities.
Until then, wishing you growth and happiness!
To your success,
Majid
Majid Abai
CEO & Founder
Concepts Rise
Office: 424-320-0524
Email: majid.abai@conceptsrise.com