The Great Recession forced many companies to fail, from bankruptcy declarations to going private. On the other hand, others saw storied milestones, and while that sounds counterintuitive, it happened.
According to research by Valasis, close to 9% of companies actually flourished and outdid corporations that were touted as being “too big to fall”. We can in fact use this data to predict what will happen post-COVID-19. The recession reshaped business operations, marketing strategies, and of course, spendings – and so will this pandemic.
Founders and executives are justified to panic during COVID-19, which seems to be prepping an economic foray to many businesses. Startups will be hit the hardest. However, it does not matter how long you have been in operation; your business strategies will matter the most in this new era.
“While many people are justifiably terming the pandemic as an economic threat, for others, it is a growth engine,” says Joshua Littlejohn, small business consultant and Founder of Norgress.
As an advisor, Littlejohn knows that running a business is typically not a walk in the park. He has embarked on a mission to help businesses keep moving forward amid COVID-19. He believes that through adapting to specific techniques, COVID-19 can be a point of elevation for some companies.
Here are three ways he says businesses can adapt and evolve within this time:
1: “Operate On A Low Cost – No Big Spending”
Before the epidemic struck, a surprising majority of companies have been living the moment with no future plans. Few thought of the possibility of an economic shock. Therefore, most companies, especially the startups that were launched after the Great Recession, have not been through any real major economic downturn.
Joshua, and his team at Norgress, have helped different sized companies since inception in 2017. He mentions cutting costs as a major way to sail through hard times. “Not only should companies be focusing on cutting costs during times of economic distress, but companies should always run their operations at the lowest possible costs. All while maintaining efficiency.”
2: “Be Cautious When Hiring”
After lowering your operational cost, the next major issue is making sure you’ve got the right team powering your company. Your team can either make or break your company. Being in the game with people you trust is a sometimes underrated but valuable factor.Littlejohn advises that during the hiring process, companies must direct focus on loyalty.
“Ensure that during your hiring process you are careful to not be hiring ship jumpers. They are the people who are in your companies, but they are always looking for that other job, and have zero commitment to anything. It is always great when people can advance in their career and that advancement might not be with your company.” Littlejohn stated. “But these people are the ones that alway have that advancement front of mind and tend to act in machiavellian ways. It times of hardship dependability and trust are paramount”
3: “Focus On Clients Like Never Before”
“After addressing your inner circle, as in your employees and company operations, it is time to focus on the outer one. That starts with your clients. They make up the most important part of your company, so ensure you are putting them first at this point. They will be your lifeline.” said Littlejohn, when asked to expound on his third point.
Earlier this year, Littlejohn introduced a non-profit project called Get Ready World that focuses on helping groups and small businesses in the months ahead by providing them with tools to establish their online presence and connect with their customers.
Bonus: “Fix Things When There Is Less Attention”
As a bonus point, Littlejohn added, “Instead of struggling with making more profits during the pandemic, you can use this time to fix the pending issues in your company, those issues that are best addressed when there is not much attention.”
As stated earlier, COVID-19 will surely cause another economic wave that will wipe many businesses, with startups being the most affected. But in some way, you can turn it into a blessing by perhaps utilizing Littlejohn’s strategies.
“I hope many people can thrive, make progress and raise the bar for the next generation of entrepreneurs by teaching them what to do during hardship. Personally, this year has caught me unawares, so if there is anything I hope to really pass on it’s that.” He concluded.
0 Comments