Over the next few days we will be sharing some top tips on how to make your business resilient to economic downswings. We want you to survive and thrive, no matter what the economy is like!
It remains a puzzle to many why some businesses thrive and others implode during economic uncertainty. It would be a mistake to assume that all businesses suffer in some way. In reality, some businesses are essentially recession-proof and its not down to size or profits, its their organisation around a dynamic and healthy business cycle.
They plan for the future and keep strategies in place for whatever challenges may arise. They sell products that don’t go out of fashion and have a strong focus on profits in an intelligent manner that helps them to grow.
Plan Ahead to Get Ahead
When a company starts to lose direction and gets distracted by economic downturn, it’s difficult to recover. When economic conditions become adverse, those who were barely afloat sink, those treading water drown and those without direction get confused and lose their connection to their customers. To avoid any of these effects, it’s important to plan and prepare for any eventuality.
According to an article published in BusinessWeek, market measurements and forward-looking financial indicators are important tools. Without them, it is hard for business owners to see hard times coming. Often, cash reserves can be wiped out completely. Of course, no business owner has a crystal ball but those who employ simple and easy to read tools for testing performance tend to be in a stronger and more informed position. They can quickly identify trends and adjust accordingly.
Those who have proper tools can realign their focus when profits begin to drift downwards in a more precise ad accurate manner, allowing them to get back on track for profitability. Those who do not respond proactively to changes risk losing time, money, customer base and even brand integrity.
The Difference between Response and Reaction
We all talk about the need to remain calm and aware under stress, so that instead of REACTING out of panic in a random way, one can RESPOND with levelheaded and effective behaviours. If you have adequately trained and sufficiently practiced to meet a set of challenges, responding to adverse conditions can be much easier. However, reacting to situations you are not prepared for frequently leads to knee-jerk reactions that are neither thoughtfully conceived or efficiently executed.
The difference between response and reaction generally boils down to deliberate preparation, prior planning, and intentional action. This stands in stark contrast to simply doing something from a place of fear or panic.
One of the interesting things about response versus reaction is that once one reaches a certain level of training, instinctive behaviours transform from reactions into responses – and from reactionary to responsible.
The first time a new sports player enters a professional game, it can be a harrowing and clumsy experience. But after some time and a little bit of repetitive practice, flawless responsiveness becomes instinctual and subconscious. The blur of the defence rushing forward no longer inspires panic, but instead indicates more potential openings that can be used to score. The player begins to respond positively under pressure, because that environment produces energy and insight.
Similarly, when a business is planned with proper contingency solutions in mind,
it can avoid missteps and bad judgements while capturing a greater market share. Experiencing an economic downturn only makes it stronger – by allowing it to put into action the concepts that it has been practicing all along, it refines and strengthens its approach. Meanwhile, the weeding out of weaker and less capable competitors puts it in an advantageous position once the economy strengthens.
This blog post is part of our ActionCOACH guide ‘Building Resilience’ that can be downloaded here
For more advice and to gain some expert knowledge, book in for your FREE 30-minute coaching session with Mark Dilks HERE.
