Bouncing Back From Bad Business
Dealing with adversity is a learning and growing opportunity. For example, some investors consider the financial crisis of 2008 their biggest buying opportunity. Bad business comes in different forms and can be very damaging on an emotional level if they are personal, or affect your self-esteem and lead to depression if they are work related. No matter the nature of the trouble, you should process it the best you can. Drawing lessons and adjusting your mindset is key to your success. Every struggle gives you an opportunity to look at things differently. For financiers, that could mean time to restructure and diversify. Personal struggles could rearrange your values and be a wake-up call to pursuing your dreams with more intensity. Last, personal issues can prompt you to address outstanding issues laying a more solid foundation for future growth.
Look beyond the panic
The first thing to remember when bad business strikes is to keep a cool head. You have to keep in mind that struggles, setbacks, and crises are an investable part of life. Even though your instincts may prompt you to power down, you have to fight that urge. In moments of extreme hardship, it is important to take a step back, take council from the people in your circle and recalibrate your perspective. Finding a new balance helps you stay calm and aids in recalculating your agendas, whether they are emotional or professional. Times of crisis require utmost attention and, if addressed appropriately, can lead to innovative and creative breakthroughs that strengthen your organization.
Think outside the rules
When bad business strikes it usually means that the current set of rules and formulas that govern an entity or system have failed in some way. Although you have to keep to your structure and be careful not to incite panic, you should think outside the rules and framework of the system you work in. Often unorthodox approaches (original or borrowed from other industries or individuals) can help you find a quick fix for your struggles or at least subdue the negative effects while you are building a sustainable solution. By being proactive in searching for alternative solutions, you will promote confidence in your team and inspire them to think outside the box as well.
Take advantage of lowered competition
In times of crisis, companies usually cut down on marketing and sales efforts and stick to their core revenue drivers. You can lay off employees, move to smaller offices, reduce research and development, which puts you on the defense. Successful, level-headed leaders understand that these times are the greatest opportunity to grow and learn. Sometimes these situations create opportunities to expand. If your books have been balanced up to the crisis, you can take advantage of the low competition and expand as much as your resources allow you. You can enter new markets, buy new assets, and find talented employees at a much lower cost. Finally, this way you are setting yourself up for a growth spurt after the crisis is over.
Learn to cut costs and think ahead
Slumps in demand and market share can be very informative in terms of your resource allocation. As your business grows, a certain degree of inefficiency may develop in aspects of your business. Lean times can teach you how to introduce a degree of austerity to resource allocation and use. In the long run, this will improve your profit margins and free capital for investment. Even after the crisis is over you will have learned how to run your company more efficiently. In conclusion, once business goes back to normal you will be in the best shape to take advantage of booming markets.