Once again the world is descending into chaos. This is affecting the international business market and we are slowly moving towards global economic uncertainty. It is already tough enough for businesses to survive and thrive in a highly digitized and competitive market.
How are they supposed to cope with the tremors that have been continuously shaking the global economy since the advent of the COVID-19 pandemic? It is just one thing after another.
But here are a few tips that can help your business surf safely through the uncertainty.
Keep track of your finance
When under uncertainty, the first and foremost thing to do is check whether your company’s financial health is good. If it’s good then you can weather the storm, if it’s not, you just might be in deep trouble.
Start by checking your balance sheets. Check out your profit and loss statements. Whether you are making some purchases or investments that aren’t the priority in these uncertain times, that might be complicated or are long-term investments.
Reevaluate those decisions and if they seem bad bets at the time then divert that capital to good bets or just stop the flow before your company is reeled in the quicksand of bad investment.
Keep an eye on your cash flow. In times of trouble, cash and resources are thinned out. You have to ensure that you have enough cash flow to keep your company going through these times or until you find something steady or land a deal that saves you from all your troubles.
This cash flow is the bloodline of the company that keeps it moving so you have to ensure that it is not only enough but also that you are not losing some of it unnecessarily. If it is called the bloodline of your company then treat it like the blood. Don’t let it flow unnecessarily. If you see it’s wasting away. Stop it, put an antiseptic, and a bandaid, and let it heal.
Ensure your income is secure. Where does your company get its money from? Is it from investors or do you generate revenue from your customers and that money keeps your company going?
If it’s the investors you are getting your money from then you should talk to your investors to ensure that the economic uncertainty hasn’t affected their decision and trust in your organization or business goals.
You have to earn their trust again and show them that your company can achieve its business goals even in the face of uncertainty. Securing the funds and not letting them slide away is extremely important, because if you let them slide away, you may soon be out of business, and in the time of global economic uncertainty, you wouldn’t find anyone willing to put in their money and trust in someone else’s ventures.
At least it’s harder than usual. Not to mention you would have one more serious problem on your plate when it is already full due to the uncertainties.
Keep your customers happy and build a strong relationship with them
Now if your company is running from the revenue it generates from customer sales then you have to treat your customers like you would treat your investors and shareholders.
Strengthening your relationship with them in times of trouble is a testament that you don’t care just about business or earning money but also about the people associated with your business.
Of course, it is in self-interest only but getting to know the priorities and preferences of your customers in troubled times allows you to refocus or simplify your business strategy under complex situations.
Even sending them a simple message of encouragement or asking them how they are doing is enough to maintain the trust and credibility of the brand in the market. You show you care about them and they will stand by you in troubled times.
Customers love a brand that is consistent and sticks to their core values even when they are facing difficulties in the market. This also tells the customers that they are not alone (if the situation is tough for them) and maintaining the relationship also tells them that you are facing the uncertainty strongly and your company is here to stay even after the uncertainty.
This is enough to stop them from taking their business elsewhere.
Take care of your employees
Your employees are the reason why your company is functional in the first place. Without them, you wouldn’t be able to serve your customers or achieve your business goals. They are your first and foremost line of defense or frontline workers. They get the benefits in good times and they have to endure the difficulties in tough times as well.
So, keep checking in on your employees as well. They are your work family. I know many don’t agree with using the word family for the professional aspect. But it suits well to show how important your employees are to your business. And how everything about your company and market affects them as well.
So, if they aren’t good or in good condition then it affects your business as well. It’s time you take care of them. See to it that they are well and good to serve your company and your customers. Only a happy employee can make your customer happy.
You would be able to make your customers happy only if your employees are happy first. If they aren’t happy, then what good of a service would they offer to your customers? What good product are they going to develop? Think about it for a while and you will realize that your employees are your frontline workers and your company needs them as much as you think they need your company.
Monitor and manage risks
Now that you are taking care of internal factors, it’s about time you focus on the external factors that might affect your business and its capability to generate profit or its good market position.
Recognize the patterns or identify the trends or shifting market situations that might affect your business, because if you fail to do so at the right time, it would affect your business adversely.
Remember when Nokia ignored the advent of smartphones and they were soon put out of business even if till that time, they were the leaders of the industry? The situation won’t see who you are, if you can’t cope, you are soon left behind in the dust.
If there are some risks to your business then leverage your good financial health, good customer relationship, and good talent pool at your disposal to face and get over those risks in time before they hurt your business.
I hope this article has been helpful to you and has gained enough insights on how to sail your business boat through global economic uncertainty. Thanks for reading!
Kushalam 