Success in the post-pandemic marketplace is the product of bold acts from bold entrepreneurs. Economic hardship triggers our flight-or-fight response – it’s how we as humans deal with threats. But, in business, this reaction can sometimes be counterproductive, and often the best moves are counterintuitive.
If you’re a small to midsize business owner, you may be playing it safe, sitting on your money, and waiting for the constantly shifting winds of this economic storm to pass or settle. However, experts say this could be your downfall. In business, as in life, fortune favors the bold.
It’s Impossible to See What’s Next
We hear this from business owners a lot – they used to be on top of industry trends, but now everything is unexpected, and it’s impossible to predict and plan. Preparing for the next cycle or season in your industry is no longer a viable process; businesses must be agile and adaptive.
What’s more, with your head and pockets buried beneath the sand, you can’t see what’s happening around you. Weathering the storm instead of riding it means you cannot keep up with the pace of your industry, and when you’re ready to get back at it, you’ll be miles behind.
Stepping Back to Get Ahead
When an investor notices a significant decline in the value of an asset, they may try to average down; averaging down is an investment strategy in which the investor buys more assets after a price drop in the initial investment to reduce the average cost of the acquisition. It’s a bold move and, if the stock turns around, amplifies the investor’s gains. For those with high-risk tolerance, it can be an artful and beneficial decision.
Now, apply this logic to your business. Yes, there is pervasive economic hardship, perturbing and meteoric rises in stocks, and inflation limiting consumer buying power. Still, there is a place beyond this – a different market with new opportunities. Re-investing in your business now so you’re ready for an upswing will put you at a competitive advantage.
This means:
- Investing in your branding.
- Expanding and diversifying services or products.
- Renovating brick-and-mortar establishments.
- Updating and digitizing processes.
- Hiring skilled workers at competitive wages.
It will cost you, but it will quite likely pay off.
The Market Will Make It
It can be challenging to rationalize bold business decisions as we approach the two-year mark of life with COVID. But, just like averaging down, the success of business owners relies on their confidence in themselves and the market. We may not know what it looks like on the other side, but we know it is there: and that is enough.
Perseverance and trust in the buoyancy of our economy are crucial. The timid may cower, or leave the industry altogether, while the courageous clear the path to the future. Unlike the Great Depression of the 1930s or the not-so-distant Great Recession of 2008, the current economic downturn is not the result of structural problems but rather the pandemic.
If you’re ready to leap into the future of business, we want to help you. The attorneys at Richards Rodriguez and Skeith are business experts and can assist in restructuring your operations to meet the demands of a new marketplace. Be bold and contact us today.