We're living through unprecedented times. An economic crisis like the one caused by the recent pandemic is a significant test for any business and leader. And after that a significant economic slowing. Only the strongest survive.
Here are some of my tips and tricks to help your business not just survive but thrive through these external shocks.
Start with survival
Major economic shocks can cause businesses to fail. The first and most important step for your business is to survive. In the case of the pandemic, some businesses lost as much as 90% of their revenue almost overnight. Unprecedented times call for unprecedented measures; do whatever it takes to survive.
Create a growth plan
Businesses will fail. Economic shocks will destroy the weakest, least efficient businesses in your industry. Once you have avoided this fate, put together a plan to rapidly grow your revenue. Once the worst of the crisis is over, start to aggressively pursue market share. You should be aiming to at least double your revenue over three to five years (or shorter), otherwise it is not ambitious enough.
Adjust your communication
During a crisis, every day could make or break your business. You need to adjust your communication strategy to suit. Think about increasing the frequency of your communications as well as the level of detail you are sharing. However, while increasing the frequency, still keep a regular cadence, as this will project control and stability.
Scrutinise your expenses
A crisis can substantially diminish your revenue, but you can always control your expenses. Related to my first point, you need to survive the crisis. Don’t be afraid to make necessary cuts to your expenses. Consider, however, how those cuts will impact on your ability to spring back quickly once the crisis is over.
Stick with your A-team
Employee expenses will often be your largest costs. During a crisis, identify your top-performing team members – support them and cut the under-performers.
TAKEAWAY: Following these tips will set you and your business on the right course to survive the next crisis. You cannot control external events, but you can control how you react to them.