The economy of the has recently gone through a very troubled period. Businesses from all sectors, of all sizes and in every part of the globe are now seeking solutions to survive and recover from huge losses. There is no company that is completely immune to the possible effects of a major financial crunch. There is nothing like economic recession proof business.
It will be challenging to figure out how not to be affected by the difficult economic environment and if possible, take advantage to grow and gain market share. Over more than three decades of experience in retail, I have learned that some crises can really help in establishing new business opportunities or strengthening the existing ones.
While many firms focus most of their energies in reviewing and reducing operating costs, the winner focuses on revenue growth by creating new products and services, seeking new partnerships and also acting to reduce costs.
The winning companies dedicated 10% of their energy into actions to cutting costs and 90% in search of alternatives that enable increased sales. The environment in these companies tends to be proactive, optimistic and constructive. The matter is predominantly about the crisis, and almost no one smiles during financial crisis. But for the business seeking growth, top managers are always conscious of the difficulty, but do not value much the issue. The result is a less charged atmosphere of tension, people more optimistic and with lighter mood, open to new ideas and solutions, and consequently more customers are willing to buy their products and services.
By concentrating on cutting costs alone, the company will deliver badly. This is on the biggest mistakes any business can make during troubled economic times.
Firms which are optimistic and focused on growth, in economic crisis tend to ask themselves:
1. How should we do to increase our market value?
2. How can we create more sources of income?
Ensuring alternative sources of revenue you are also fighting the pressure of costs, and what is more valuable, raising the spirits of people, organization and family. Hence, a good suggestion for those wanting to take bold approach may be to focus on growth by encouraging employees to think of strategies to increase the organizational value, rewarding them when their ideas contribute to sales growth.
You can accomplish this with your own resources, learning everything you can about strategies for prospecting, marketing, sales and self-promotion.
However, do not forget that the best solutions depend on their ability to effectively do market penetration, optimized relationship, effective communication and, above all, a good dose of courage, focus and motivation.