Steve Shaheen, CEO and founder, DTG.
If the true definition of a recession is “a decline of economic activity that can last months or years,” then I guess you can call the current situation a recession. Yet, many economists are on the fence about whether or not what we’re experiencing today is actually an economic recession.
Regardless of semantics, we are experiencing unprecedented economic conditions that are making some organizations more skittish about investing in infrastructure and goods, and subsequently, it can be more challenging for businesses to grow and be successful.
In order to remain competitive, we need to invest in new ways to innovate and grow. But, how do you do that when most signals and financial indicators urge caution? How do we mitigate economic risk or perhaps even capitalize on these uncertain market conditions? Remember, there is always a silver lining. You may just have to look a bit harder to find it.
Here are six strategies to maximize opportunities, create value and even accelerate growth during this market uncertainty:
1. Focus on value.
Companies are willing to invest in solutions that help them reduce costs or do more with less. Every conversation with a business prospect must lead with the value proposition. Determine your customers’ most urgent issues and their pain points. Illustrate how they can ease their pain and increase productivity and profitability. One data-driven way to do this is by leveraging Lean/Six Sigma methodologies to identify and monetize the waste in their current processes and illustrate a proven return on investment on your approach.
2. Change your view.
Look at your solutions in new ways. You’ve already made the investment in innovation, resources and infrastructure. Identify new use cases and explore how you can tailor your solutions to meet different markets/different needs. For example, my company has successfully been selling into the warehousing/logistics space with mobilized workstations. By reimagining our core platform, we’re now also successfully delivering solutions to hospitality markets.
3. Pause to strategize.
If your business is experiencing a slowdown, chances are that you may have a bit more time to go back to the basics, revisit your business plan, brainstorm and develop new strategies. You might decide to change your standard operating procedures or envision where you want to be in five years. It’s also a good time to incentivize and challenge team members to think outside the box, creating new prototypes to be tested by your existing customer base.
4. Speak their language.
Demonstrate you know your customer’s business, their pain points, their fears. Do what it takes to become industry experts—even if that means spending a day on the factory floor or at the stadium concession stand. You can also engage with an industry expert to better understand specific markets and what’s driving them. The good news is that these experts may also be concerned with the economy and willing to engage at a more palatable price point.
5. Don’t stop investing.
While the first reaction to a tough economy might be to halt all noncritical expenditures and take care of only the basics, in my experience, this is the surest way to set yourself up for failure. As history has proven, every downturn eventually turns into a growing economy. By failing to invest in the talent, tools and infrastructure that give your business a competitive edge, you could be left behind—if you continue to exist at all—when the upturn happens. So my advice to you is don’t stop investing, just engage at a more palatable price point.
6. Look for the silver lining.
A challenging economy can also be a time for new opportunities that were previously impossible. Partners that may not have wanted to give you the time of day, may now be more available and willing to work together to find new opportunities. Employees who may have been unattainable in the past, may now be willing to explore new career opportunities and suppliers may be willing to negotiate better deals. Look for the silver lining. There is always a silver lining.
We are experiencing economic uncertainty and rising interest rates, resulting from pandemic aftereffects and global strife, yet there are ways to remain resilient and even grow your business. Even in the toughest times, opportunity knocks and you must be ready to respond.
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