6 Tips for Managing Your Business During Volatile Times
It’s no secret that we’re living in uncertain times. Political instability, Brexit, the war in Ukraine, and (of course) the fallout from a global pandemic have created an environment of economic uncertainty, the likes of which we haven’t seen in generations. As a business leader, it’s your job to navigate your company through these turbulent waters. But how can you do that when you can’t be sure of what tomorrow will bring?
The key is to focus on the things you can control and let go of the things you can’t. You can’t control the economy or the political situation, but you can decide how your business responds to them. Here are a few tips for managing business uncertainty during these uncertain times.
Have a Diverse Customer Base
One of the best ways to safeguard your business against uncertainty is to have a diverse customer base. That way, even if one market segment experiences a downturn, you’ll still have other areas of your business to rely on. For example, your business might suffer if you’re an on-premises retailer and the economy takes a turn for the worse. But if you have a solid online presence, you can still rely on e-commerce sales to keep things going.
Build Strong Relationships with Your Suppliers
It’s also essential to build strong relationships with your suppliers. You’ll be more likely to get favourable treatment in terms of pricing and delivery times—factors that can be crucial for keeping your business afloat during tough times. Furthermore, having good relations with your suppliers will make it easier to negotiate contracts that are advantageous for both parties involved.
Keep Focused on your North Star
During turbulent times, keeping your business focused on its goals is crucial. What is your company’s North Star? What is the one thing that you’re striving to achieve? When times are tough, it can be tempting to veer off course and pursue short-term gains. But if you stay focused on your long-term goals, you’ll be more likely to weather the storm and come out ahead in the end.
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Create a Plan B (or C or D)
Having a plan is fine, but do you have backup plans for when it goes wrong? For example, what will you do if your primary supplier goes out of business? What if there’s another wave of the pandemic? What if a recession hits? By planning for different scenarios, you’ll be better prepared to weather any storm that comes your way.
In uncertain times, it’s more important than ever to be flexible. What worked yesterday may not work today, and what works today may not work tomorrow. So be prepared to pivot quickly and adapt your plans as the situation changes. The businesses that survive will be the ones that can change course the fastest.
Communicate with Your Team
Your team is looking to you for guidance during these worrying times. Keep them updated on developments and let them know what they can expect in the weeks and months ahead. This will help keep morale high and ensure everyone is on the same page.
Business uncertainty is nothing new. Throughout history, there have always been periods of economic upheaval and political turmoil. So keep focusing on your overall plan, but be prepared to flex with the prevailing conditions. Adaptability and responsiveness will give your business the best chance of weathering any storm.