Why demand is more important than the economy
Does a recession signal a decline in business growth?
It is hard to drown out the current deluge of negative media stories on my news feed related to interest rate hikes, Wall Street slides, inflationary pressures and cost of living challenges and focus on the positives of moving business forward.
We live in cycles of boom and bust – periods of growth followed by difficult economic conditions. It helps to remember that after every downturn there comes a boom.
It is not chance that decides which businesses will survive tough conditions and be in pole position when the economy turns.
One of the key factors to thriving in a recession is the psychological make up of the leadership team.
Are you courageous and strategic enough to evaluate the risks presented during a recession and then overcome the fear of those risks?
The question that you must ask yourself during these times is how much uncertainty can you really bear? Can you put up with a level of uncertainty that your competitors can not?
Recessions force companies to rethink business models and come up with new ideas and products. If you focus on your vision of the future, you can plan for key acquisitions, product or customer experience upgrades and market penetration through smart marketing. A recession is a blip in time for those who see the bigger picture.
Companies like Microsoft, Apple, Mailchimp, Groupon and Slack were all launched in times of economic decline. Instead of becoming paralysed with fear these businesses innovated. They worked hard on their value propositions, invested and secured their places in entrepreneurial history.
Don’t let a recession go to waste
Consumers have altered their shopping habits and are more discerning during economic slumps. Figure out what people will keep spending money on either because they really have to or because they really want to. Adapting your value proposition to the client during times of heightened emotion will keep you relevant, even during a downturn.
Business leaders often go into firefighting mode during an economic slump, cutting workforce and budgets in knee-jerk fashion.
Recognising that everyone in business is facing the same problems opens up the realisation that it is a great opportunity to get ahead.
Your competitors are reducing costs and spending less money on marketing and advertising. Bold business owners can benefit from this reductive approach. Interestingly, advertising rates are often lowered during a recession as, like all businesses, media agencies and channels have to attract new clients. Look for value added services, lower fees and rates and deal sweeteners. In my experience, negotiating with media during a downturn can be extremely rewarding.
Use this phenomenon to take advantage of the weakened competition and increase your traction in the market.
Generating demand as consumers tighten their belts is a skill set to be mastered.
Choose the right people for advice.
DC Strategy has over the years have seen all manner of network growth strategies and every facet of the industry through good times and bad.
After 40 years of supporting some of the world’s largest brands in growing their networks, DC Strategy is best placed to be your trusted advisor. We will assist you to establish a strategy that provides great return in uncertain economic times.
Global economic slumps are challenging times. However, it may also be a perfect time for those bold enough to rethink their business models, incorporate innovations into their processes, listen to what their customers need right now and continue to implement significant enterprise value growth strategies.
Call DC Strategy at 1300-682-657 to help clarify your vision and build for the long haul.
Or email Katie Missingham, our Business Development Manager, on firstname.lastname@example.org for a confidential discussion.
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Forbes.com Serenity Gibbons