The experience of starting a business is many things—exciting, inspiring, fulfilling—but also involves dealing with economic and macro level uncertainties. One thing entrepreneurs realize very quickly is that they need to learn to navigate and manage their business in times of economic uncertainty.
So, how are you navigating economic uncertainty in your business?
Economic uncertainty is a reality faced by all entrepreneurs within various degrees, but it also offers unique opportunities for innovation and growth. In fact, it gives entrepreneurs a tremendous opportunity to distinguish themselves from the pack!
Here are some key options to consider in uncertain times:
1. Stay Agile
Any strategy for early stage companies involves a focus on business sustainability. Be ready to pivot and adapt your business model, as market conditions change.
There seems to be a belief—even among informed stakeholders—that being agile equates to "business failure"; turning to agility because the business failed. This could not be further from the reality on the ground. Agility can apply to small or larger disruptions in the market and used as a testing and learning tool.
Ultimately, if your business can withstand negative external conditions or developments in the market, you have just re-affirmed your business model!
2. Create Win / Win Partnerships
A Win/Win situation is one where all parties benefit, one where the partners embrace their complementary skill sets and find mutually beneficial involvement. Is there any one in your market segment that may have an appetite for synergies?
It is crucial to find ways to augment customer-centric innovations and value for customers, as you explore partnerships. How can you build alliances to improve cost-efficiencies and find a practical innovative way out of the uncertainty?
2. Focus on Core Strengths
Double down on what you do best and deliver exceptional value to your customers. For example, reach out to your top customers and request referrals, think in terms of customer service and additional amazing touches you can provide to shine further.
Remember during economic uncertainties, your competitors are also struggling and some may even disappear. This is the time to give it your all!
3. Build a Financial Cushion
Ensure you have enough reserves to weather unexpected downturns.
A financial cushion consists of the savings you keep in order to be able to cover emergency costs, survive economic hard times, and cover unexpected costs for your business. A financial cushion provides financial security and prevents you from having to go into debt.
Having a financial cushion can give you the ability to outlast your competitors during economic downturns.
4. Seek Out Opportunities
Uncertain times can open doors to new markets and customer needs. Identify them quickly and move in.
For Example, in response to the COVID-19 pandemic, Airbnb famously shifted its focus to long-term stays and local travel, which helped the company to maintain revenue while reducing marketing costs and other expenses associated with traditional travel.
Remember, economic uncertainty offers unique opportunities for innovation and growth. In fact, it gives entrepreneurs a tremendous opportunity to distinguish themselves from the pack!
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