As news outlets continue to deliver progressively worse economic headlines, a number of companies are already beginning to shelve their business transformations plans in order to protect their cash flows.
Is this the right path to be taking?
I get it: Entrepreneurs need to be pragmatic about economic headwinds. But, all too often they forget that headwinds can also be seen as opportunities. Opportunities where their services or products can rise above the adversity and flourish. Furthermore, any business transformation that is occurring now will likely begin seeing the seeds of success in just a few short years from now when the economy has moved past it current inflationary challenges.
What are some of the ideas for business transformations I’m thinking about? Think streamlining logistics, developing operation efficiencies, investing in human resources (training and employee retention) and developing digital infrastructure – all of these ideas should yield significant competitive advantages, allowing the company to bounce back faster, when the economy begins to pick up again.
Entrepreneurs should view these trying times as an opportunity to invest in their businesses with a long-term view. Moreover, any investment now should be done with an eye toward capturing larger market share in the future. In order to capture market share, businesses need to understand what their customers want and improve upon that.
It may sound risky to take on an ambitious business transformation project with a looming economic downturn, however, the benefits will be well worth it. Companies that outperform their peers anticipate the potential for impact/disruption and make investments to take advantage of these changes. First movers pay attention to the early warning signs of a pending change and then develop an action plan to take advantage of the change and act quickly.
Don't be caught flat footed, and don't be afraid to invest in your business when you have an opportunity to gain market share - especially when the economic conditions might not be ideal.
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