A bad economy can hurt a business in a number of ways. Adjustments to interest rates could affect a business’s ability to borrow funds.
People saving their money during a period of economic uncertainty could mean they are spending less and therefore, the business has fewer customers. Some sectors may come to a relative standstill if the overall market consumption declines.
When times become difficult for your small business, it is important at that point, more than ever, to retain a cool head. Sometimes, there is a simple solution that may help you keep the business running that you wouldn’t have noticed if you were too stressed or bogged down in tiny details.
Being aware of the big picture and making sure you as the number one employee are performing well are the number one priorities during a period of hardship. Brain should take precedence over emotions when making decisions.
It is crucial to be aware of all challenges impacting your business and take steps to overcome them. Having a robust and consistent business strategy which addresses all potential risks will enable you to take advantage of the growth opportunities and entice customers to ensure your business grows.
Doing so will ensure that your business remains competitive and thriving in the ever-changing business world. Growing businesses face a range of challenges far greater than a static business as decision making can be more dynamic and decisions are exposed to unforeseen risks. As a business grows, different problems and opportunities demand different solutions - what worked a year ago might now be not the best approach. All too often, avoidable mistakes turn what could have been a great business into an also-ran. Recognising and overcoming the common pitfalls associated with growth is essential if your business is to continue to grow and thrive. Crucially, you need to ensure that the steps you take today don’t themselves create additional problems for the future. Thoughtful leadership will help you make the most of the opportunities, creating sustainable growth for the future.
Stick to the plan
Businesses that do not stick to an agreed plan often run in perpetual crisis mode. Every day brings new challenges that urgently need resolving and management spends most of their time troubleshooting. As your business grows, this approach simply doesn’t work. While a short-term crisis is always urgent, it may not matter nearly as much as other things you could be doing.
A disciplined approach to management focuses on leading employees, developing your management team and building your business strategy. Instead of treating each problem as a one-off, you develop systems and structures that make it easier to handle in the future. Having a clear direction well understood by all your key managers and being focused on the end game with no deviation is paramount to win in a tough and highly volatile environment.
Amazing power
To bring about sanity to a business during difficult times you should be focused like an act of deep meditation. There is an amazing power in focus though you may have not thought about it that way.
Think of a laser beam — a narrowly focused beam of light that is so powerful it can cut through steel. Focus in business has similar powers. Success is a very personal thing and means different things to each of us; however, every person who has been successful is practising a high level of focus, faith and effort. What you do is important, but how you do it is even more important. The next time you meet someone who you believe is exceptionally successful, take a closer look at his or her approach. I bet that person is making practical use of focus, faith and effort. It works.
Without faith, you are finished before you start. First and foremost, people need to believe in themselves. If you do not believe in yourself, it is certain no one else ever will. You then need to have faith in a vision. Every exceptional, successful leader has a crystal clear vision — whether they are an athlete, an entrepreneur or a politician.
Without faith, it becomes much harder to execute with focus and effort. As a leader, you also need faith in your team. I have met a few entrepreneurs who do nothing but complain about their team. When you have lost faith in your own team, I can guarantee they have lost faith in you.
Keeping a handle on costs is crucial in tough times. Owners need to stay on the offensive and get employees on board with changes that are being made. However, be cognisant of not sacrificing quality of anything you do when making changes.