Executive Chairman of 369 Global Inc. and CEO of Computek College.
Many business leaders today are holding their breath to see what’s next and whether we will enter a recession. As a leader, I have always found it crucial to prepare for economic changes based on what you can control when you can control it, as there will always be things in the global economy that you can’t predict.
The concept of “future-proofing” refers to the process of anticipating the future and developing processes that will help you weather whatever may come your way. When I think of recent conversations I’ve had with my peers who are leaders of businesses in different sectors around the globe, this is a topic that is on all of our minds. Here are a few things I am considering.
Diversifying Revenue Streams
I believe the primary business lesson learned around the world through the global pandemic is the importance of having more than one revenue stream. Many restaurants, retailers and experiential marketing companies shuttered while e-commerce businesses thrived. This showcases that, to weather economic storms, it is helpful to have multiple revenue streams.
For some businesses, this can be as simple as investing in a well-developed e-commerce presence if it’s not already in place. For others, this will be about more strategic long-term investments that will deliver passive income in time.
For example, my business conglomerate started as just a regulated career college, but over time, it has expanded into a marketing agency that serves newcomers and a film production company that focuses on sharing underrepresented stories. Our new business entities were based on learnings from the college and the network we began to build. All of these very different lines of business share core values and have tremendously benefitted profitability. If you rely on just one revenue stream, I encourage you to consider changing that. Strategize with the right stakeholders, whether it’s your internal team, mentors or advisors, to diversify.
Expanding Globally
From my perspective, operating in only one market is not always strategic, as the world is becoming more connected and the sheer abundance of talent globally could help address the labor shortages some industries are facing in North America.
Consider how you can tap into new markets to secure talent, streamline operations or benefit from diverse perspectives and educational backgrounds. Asking the right questions and meeting with the right people often uncovers opportunities to expand your company’s operations into new markets and grow.
One way to do this is through a series of meetings or informal focus groups to test the response to what you are selling and initial marketing messages. In my experience, meeting with people living and working in the markets you’re targeting has a much higher return than engaging a third-party research firm, especially at the start of expansion efforts. You will likely be astonished by what you learn through candid conversations, asking smart questions and, most importantly, listening.
Headcount
Take a look at how tasks are being completed in your company and whether any employees’ roles or responsibilities need to be restructured to improve output or productivity. Determine whether there are any critical positions that need to be filled to cut down on inefficiencies as well.
Part of this is identifying your key players by asking yourself, “Who would I rely on in a crisis or if the building burned down? Does each person feel valued, and are they engaged?” If you are not confident, the answer to this crucial question is “yes,” it’s time to devote the required resources to ensure it is in short order.
We recently went through a detailed review of our team and resources. This led us to make a strategic internal hire and consolidate marketing efforts. Had we not taken the time to do this, we would have continued to experience low productivity, output delays and communication breakdowns.
While a business can never be completely future-proofed, I encourage all business leaders to consider putting these principles into action and think about what other small changes might make sense based on the unique nature of their teams and organizations.
Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
Read the full article here
