How Then Should Businesses Respond To An Economic Downturn?

How Then Should Businesses Respond To An Economic Downturn?

While it’s important for the government to prepare for a possible downturn, it’s equally important for enterprises and workers to also prepare for potentially challenges in a volatile, uncertain, complex and ambiguous (VUCA).

For one, they should not allow such challenges to stop them from developing a growth-oriented mindset and pursuing improvements, otherwise a self fulfilling prophesy will set in and cause them to go downhill.

They should not lose sight of the ball, overreact, and unwittingly weaken their businesses.

While there are virtues in cost-cutting and belt tightening measures, these measures might affect their capacities and capabilities to respond to challenges and grow their businesses.

They should constantly ask themselves:

What are tomorrow’s problems they should start resolving from today?

What are tomorrow’s opportunities they should start capitalizing upon from today?

They should look at how to capitalize on silver lining in every dark cloud.

Proactively identity markets that are unserved and under-served, or can better served by new and better offerings.

Exploit new needs, gaps, markets, businesses and opportunities that will rise with every change of the economic and business cycles.

Business is not just about expanding market size but also about enhancing market share.

Therefore, a soft market is an opportune time to strengthen competitive edge, and capitalize on competitors’ fear and passiveness to expand and deepen stakes in the market.

While it’s not easy to preempt, prevent and respond to potential challenges, that should not stop entrepreneurs from building an ever-improving and more sustainable business model.

Develop an adaptable organization with able and agile talents that will respond to every challenge and take their organizations to a higher level.

Expand their business offerings and pioneer new markets, businesses, and opportunities.

Every downturn is also a strategic opportunity to redesign the business model, reinvigorate corporate culture, re-skill the workforce, and reengineer the operation to improve productivity and results.

It bodes well to prepare for a downturn during an upturn and prepare for an upturn during a downturn.

https://www.straitstimes.com/world/g-20-finance-ministers-concerned-about-preparing-for-risks-strengthening-global-system-heng

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