Co-Founder and Chief Operations Officer at Set Schedule. Resident tech guru.
getty
If your company has successfully implemented strategies and capitalized on opportunities during the past challenging years, I believe you are now well positioned for success in 2023.
Take Warby Parker, for example, the eyewear company that went public in the midst of a global health crisis. They disrupted the traditional eyewear industry by offering high quality, affordable eyewear online.
Company grown five times in just three years from its launch in 2010, with a valuation of more than $1 billion. Warby Parker achieved this growth by offering a differentiated product, using social media to build brand awareness, and expanding its product line and distribution channels.
For what it’s worth, an economy that is shifting and moving is always better than a stable one because it opens up new growth opportunities. Based on my own experience and examples like Warby Parker, these are some of the best strategies I’ve come up with to ensure success in the face of economic volatility.
Contents
Eliminate wasteful spending in tough times.
The last thing you want as a company is wasted resources. To avoid this, it is important to prioritize wisely so that you have a budget available when new opportunities arise, for example through acquisitions or inventory investments. By being mindful of where resources are spent, companies can reallocate funds for more fruitful opportunities when they arise. This will help companies make the most of their resources and stay competitive in the marketplace.
According to a study by Harvard Business Reviewcompanies that could balancing cutting costs while investing in growth during the 2008 financial crisis was more likely to increase sales and profitability in subsequent years. This is because they were better equipped to take advantage of new growth opportunities as the economy recovered.
Use the time wisely.
In my experience in business, I have seen how time is a precious resource that should never be taken for granted. It is a finite resource that can have a significant impact on a company’s success. In a recession, time can be extremely valuable and you need to make quick, strategic decisions that can position your company for future growth.
For example, during bad days, companies have more time to focus on research and development, and to invest in new technologies and processes that can improve efficiency and competitiveness. In addition, an economic downturn can provide companies with an opportunity to acquire other businesses or assets at a lower cost, positioning them for future growth.
Master the art of cutting costs.
The art of cost cutting in business is about finding ways to reduce costs without compromising on quality or productivity. It is an important skill for any entrepreneur or manager as it helps to improve profitability and increase competitiveness. Cutting costs can take many forms, such as reducing overhead, finding more cost-effective suppliers or streamlining processes. The key is to be strategic and focus on areas that will have the greatest impact on the bottom line. Let’s take a look at this example:
Brand marketing can be expensive and a lot of money is required for paid advertising. However, there are examples of companies that have made their branding more efficient by leveraging organic traffic and non-paid advertising.
By spending less on paid advertising during tough times, companies can focus on building organic SEO instead. Research by the Content Marketing Institute shows that organic search is the second-largest source of website traffic for B2B companies and the third-highest source of website traffic for B2C companies. This highlights the importance of focusing on organic search as a way to build brand awareness and drive traffic to a website.
Being efficient is the answer.
By reducing wasteful spending and focusing on organic growth, companies can better weather the inevitable economic shifts and movements. If you’ve been efficient over the past two years, your 2023 will be even brighter. Your past actions should now pay off and bring you greater success. To further this point, a study of McKinsey & Company found that companies with a strong focus on operational efficiency were more likely to weather economic downturns and come out stronger on the flip side.
In short, an economy that shifts and moves can be challenging for businesses, but it also offers opportunities for growth. Considering where resources are spent will help companies achieve success this year and beyond. So be prepared for the opportunities that come your way and make sure you use them efficiently.
businesskinda.com Business Council is the leading growth and networking organization for entrepreneurs and leaders. Am I eligible?
Janice has been with businesskinda for 5 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider businesskinda team, Janice seeks to understand an audience before creating memorable, persuasive copy.