Two Key Words To Consider In Today’s Economy

April 17, 2020

Whether it’s the United States, the Middle East, Asia, or Africa, every part of the globe is feeling the ill effects of the worldwide pandemic. Businesses in practically every segment of any economy have been negatively affected. Sales are down, employees are laid off, supply chains are interrupted...what used to be the normal course for most businesses is now far from normal.

Governmental assistance programs will help some businesses survive while others will be forced to close or declare bankruptcy. For those businesses that can outlast the economic downturn, their business models very likely will change forever, make them more profitable in the long-term, and produce owners and managers who are more creative than ever before.

Diversification

Businesses that were accustomed to doing the same thing over and over without change...same products, same services, same sales efforts, same pricing, same customer service...will find themselves in the back of the pack rather than leading the pack.

This is the time when businesses must put an entrepreneurial twist on their businesses. Rather than “business as usual,” a new model must combine the old with the new...capitalizing on the current business while becoming different and unique (i.e. putting an entrepreneurial twist on the business).

Diversification is an element that can contribute to business growth. In business, this is a process of expanding or varying the range of products or services. This might be in the form of related products and/or services, added value products and/or services, or even adding a completely different line of products and/or services...basically anything that allows the business to become more diverse. 

Adaptation

While diversification is important, adaptation is another key factor in future success that is equally important. In today’s rapidly changing world, adaptation in business means adapting to the local and global environment, altering business operations to the market forces, modifying existing products and services to meet the needs that are suitable for current customers, prospective customers, and evolving new and different markets.

In many parts of the world, stay-at-home and isolation policies are in effect that force businesses to either adapt to the current situation or shut down because of a lack of business. Businesses that understand the need for adaptation and learn how to adapt will build a stronger foundation for the future.  

From These Troubled Times

Out of despair and gloom can emerge different business models that would never have been considered just a few short months ago. It is certainly not an easy task and certainly not one that every business owner will be able to master. It will take thought, ingenuity, reading what other businesses are doing, and discussions with partners, colleagues, and employees. The potential rewards, however, will come to those who try. Will all ideas be successful? Will all businesses trying to put an entrepreneurial twist on marketing, pricing, and operations not fail? Of course, not...but most likely the status quo will not be enough to sustain the multitude of businesses feeling the sting of a global downturn in business. Trying and failing is better than not trying at all. Trying and succeeding is better than the status quo.