During times of uncertainties, an entrepreneur can either become fearful or keep their focus on their growth strategy and build a sustainable business anyway. Kavan Choksi points out that many robust businesses were actually launched during the time of economic uncertainty and recessions. Good entrepreneurs realize that uncertainties are simply a part of the business, and that there is a solution for every challenge. Hence, they always prioritize their business growth, and try to make the best out of the prevailing situation.
Kavan Choksi discusses a few factors to put emphasis on to facilitate business growth during uncertain times
There are a variety of external factors that can lead to a turbulent economic situation, causing a lot of issues for a business. These factors can involve political instability, natural disasters, recession and so on. As an entrepreneur cannot change these situations in any manner, it is better that they focus on the factors within their business that they can actually change, including:
- Perception of the customers about the brand and its products
- Adding more value to their services and offerings
- Marketing and pricing strategies
- Cost structure
- Growth in markets that are untapped
All of the above mentioned factors are critical to business growth, and hence must be given adequate importance. Importance should also be given to the internal and external communication of the business. After all, one of the major responsibilities of a business owner is to make sure that proper communication takes place with its staff, suppliers, investors and customers. Internally, an entrepreneur has to make sure that their staff and investors have a good understanding of the growth plan or strategy of the business. This would make sure that the company staff works as per the business objectives and goals, thereby facilitating its growth. Externally also entrepreneurs have to see to it that the suppliers know about the growth strategy and objectives, so that they can also align their business based on these goals. The customer communication of the business should also be increased, to improve the awareness of brand and product USPs. Economic uncertainties can actually prove to be a good time to review opportunities to add further value to brand products. Companies can leverage seasonal promotions like bundled products in order to increase average transaction size.
In the opinion of Kavan Choksi, it is important that business owners and management monitor the cost structure of the company properly, and make sure that flexible enough to handle any swings in the economy. They need to identify the unnecessary expenses of the business and keep a check on them, while making proper provisions for marketing costs. During economic uncertainties, it becomes more important than ever to have a proper grasp of the financial numbers and other KPIs of the business to make quick changes. Entrepreneurs need to renegotiate with the terms of the creditors whenever possible, and make sure to have a good accounting system in place that provides them with up-to-date figures. To master the core activities of the business, reviewing and updating its internal systems are also important. Doing so would make it easier for a business to stay productive during turbulent times.