There’s not exactly a lot of optimism going around at the start of 2023. The economic outlook could politely be described as tough at best, with soaring inflation and plummeting consumer confidence set to be the defining themes of the year ahead.
As business leaders, you have little choice but to take the rough with the smooth. Shrugging your shoulders and blaming global energy market and supply chain volatility isn’t going to pay employees’ wages or keep shareholders happy. Nor is it going to keep your business afloat if times get tough…
Resilience and survival are the aims of the game for most businesses in the coming months. Reducing your exposure to risk and keeping your head above water might not sound the most exciting of strategies. But sometimes, discretion is the better part of valour. You have to still be in the game to win when conditions become more favourable.
So with that in mind, here are three new year’s resolutions that will stand you in good stead through potentially challenging times ahead, and ensure you are ready to capitalise when better times come around again.
Have a clear crisis strategy
How many times have you heard that it is better to be proactive in business than always be chasing your tail reacting to situations? Well, never is this truer than when it comes to riding out a crisis. When things get really bad – if your business finds itself teetering on the edge of insolvency, for example – time is of the essence. If you are caught on the hop floundering around for a solution, you are already on the back foot. By the time you get to grips with the situation and pull together a plan to get out of it, it could well already be too late.
The way to act fast is to anticipate what could go wrong for your business and have a plan of action ready to go in advance. Undertake an audit of the different risks your business is exposed too, and then map out strategies for dealing with them. If you need some help, get in touch with our Corporate Recovery team for expert advice.
Protect your tech
We all know by now how critical digital transformation is to face down current and future challenges in business. Digital technology helps businesses become smarter, more efficient, less vulnerable to human error, and more consistent in performing at a high level. The very definition of resilient, in other words.
But your tech needs to be resilient, too. The more firms invest in digital technology, the more opportunities open for cyber criminals. Losses to cybercrime are expected to rise to an astonishing $10.5 trillion by 2025 – the last thing anyone needs when economies are under so many other pressures. The message is simple – put investment in robust cybersecurity at the top of your priority list to protect the resilience digital tech affords you.
Plan to diversify
A lot of people in business have a reputation for being on the cautious and conservative side. Which is no bad thing when it comes to avoiding risk during challenging times. However, it has its drawbacks, too. Some business leaders like to ‘stick to what they know’ as far as revenue streams are concerned, staying loyal to products and services which, they would argue, their brand has been built around.
That’s a fair argument. But sometimes you can cling on too long. For many businesses, the current challenges they are facing add up to more than just a short-term dip. They stretch back to the pandemic and perhaps even further. Many analysts would say we’re going through a major re-orienting of the global economy. And in that case, carrying on with the same old hoping things will come good again is wishful thinking.
With revenues down and margins squeezed, looking for additional or alternative income streams makes sense. If markets are changing, you need to be ready to change with them. Whether that’s looking at new products, additional services, innovative fulfilment options, fresh customer experiences or alternative markets, the goal is simple – buoying up your business by boosting sales, whatever form they may take.
How Xeinadin can support you to ‘Rise’ to the challenge
With so many external factors impacting the business landscape, we couldn’t just leave you with only 3 resolutions to make you and your business more resilient this year. Our final resolution in this blog, is for you to signup to Xeinadin Group’s new business growth programme – Rise with Xeinadin.
Now more than ever, business leaders need to spend time working on their business, instead of permanently in it. What better way to become more resilient than by focusing on growth? Each step of the programme is designed to move your business closer to being the business you want it to be.
Take a look at our full list of Rise events and book your place here.