The government-induced lockdown in response to COVID-19 has created conditions where the economy is now the softest we’ve seen since the Great Depression. That has caused serious issues for business owners and their management strategies. It was already hard for entrepreneurs to compete in today’s crowded market and now, with consumer dollars stretched thin, getting your piece of the pie has become even harder.
Our aim with this post is to share a handful of management strategies that you can lean on to not only help you through this recession but also to assist you in thriving at any time. Hopefully, these suggestions inspire you to make changes around your office and ultimately, give your company the juice it needs to find success.
Focus on Your Team’s Needs
In down economic times, it’s easy to feel like your customers need to be your number one priority. While that thought isn’t necessarily wrong, it certainly shouldn’t be your only area of concern. Down economic times will also cause members of your team undue hardship. Be mindful of that and focus on putting the people that work with you at ease as best you can. A team that doesn’t have its head in the game is one that’s not going to succeed. As a leader, it’s your job to help people feel their best so they can perform.
Tailor Products to the Economy
When an economy radically transforms, so to do consumer behaviors. Consumers will be likely to burn through expendable income during uncertain economic times. Their buying habits will shift towards necessities. You need to make sure you have products to match those shifting tastes. Anything you can do to make products more affordable or position them in a more essential light will go a long way for sales.
Consider Alternate Markets
Another of our favorite management strategies that we think is worth pursuing is diving into new markets. If you’re a company that has traditionally marketed itself to the B2C arena, could you provide value on the B2B front? What about the other way around? Some companies aren’t built to be effective in both spaces. All we suggest is that you explore the possibilities.
Dive Into Automation
Automation is the process of using machines to carry out redundant, non-creative tasks. By handing over some of your processes to machines, you’ll save money on entry-level/temp positions. To get started with automation, consider exploring free applications like Zapier which allow you to enable communication between unrelated pieces of software. If you like what that does, go deeper by bringing on an automation consultant that can help you find more tailored solutions.
If your business isn’t moving forward, your management strategies are failing and it’s falling behind. That’s why we advocate that you always have outstanding goals set for yourself. By investing your time in charting out your company’s direction, you’ll put yourself in an excellent position to gain meaningful traction. As you set goals, ensure that the directives you come up with are specific, measurable, attainable, and time-sensitive.
Invest in Digital
Consumers are finding more businesses than ever through the internet. If your company doesn’t have a robust online presence that inspires consumer confidence, you’re losing money. To get started, create a website. From there, add features to your site like online booking, social media integrations, and an informative blog. The larger your online presence is, the more likely you’ll be able to instill confidence in consumers.
Surround Yourself With Great People
If you’re extraordinarily talented at what you do, that’s great. It’s always helpful to have a leader that has a skill-set worth looking up to. Understand though that almost no business succeeds as a solo act. It’s the synergy of a multitude of talented people that have the power to truly move the needle for an organization. True to that fact, you must invest time and resources into surrounding yourself with incredible people. That starts with having hiring practices that fish a diversity of talent out of pools that have a reputation of providing outstanding candidates. The better your team functions with one another, the faster you’ll see your organization make progress, even in the worst of times.
Prioritize Access to Cash
Bad economies lead to cash-strapped companies. You don’t want to be in a position where you run out of money and then suddenly have to close your doors because you can’t afford to pay your building lease, payroll, etc. The best way to put yourself in a position to succeed when it comes to having access to cash is to liquidate non-essential assets, if possible. That might entail calling an EDI managed services provider to liquidate stock options. You might also consider selling non-essential equipment or calling in people’s debt notes.
Down economies always cause stress for business owners and consumers alike. Rather than worrying though, it’s important to take control of your situation by employing management strategies that will give you the best chance to survive today and well into the future. We’re confident that with the guidance we’ve provided, you’ll put your company in a position to roll with the punches. While that won’t necessarily guarantee your success, it’ll certainly give you additional stability as you make your stand. Are you still looking for advice on how best to run your business? If you are, we welcome you to explore additional content on our blog.