Recessions. They happen.
In fact, they've been recorded since the early days of America. They may not be something to look forward to, but they are something to prepare for. We were lucky enough to have Morey Creative Studios President Jed Morey sit down with the 'I&D' crew to talk about his experiences with recessions, and how to prepare, from a business owner's perspective.
Among the insights he shares:
Assess your core offering.
This is a big one. A lot of industry insiders will say this is the time to double down and diversify your product offerings. We believe the exact opposite of that. Look at your business, figure out where you make the most money, and consider the following: Can you make more from that? How are you viewed in your customers' eyes, and the market in general?
If you build on what you're already good at, you're building yourself a margin of flexibility during the downturn. If you take resources away to diversify, you're draining from your core offering. A new product/service could take years to get off the ground, so instead of heading into a recession with one really strong offering, you'll be left with two immature ones.
This is all predicated on your business being strong, timely and relevant. If those three things are in place—and even if they're not in place—ask yourself:
Is it worth investing in the one thing that you do?
ExO Works is a client we're extremely lucky to represent. Founded by Salim Ismail, their service offering is "transform[ing] your company’s awareness of disruptive risks and opportunities. With a curated team of ExO Ecosystem coaches and specialists, we walk you through the proven steps Fortune 500 companies need for continued success in the days to come."
Basically, they educate companies on disrupting themselves before they can be disrupted by somebody else. Disruption should be taken into account whether your business is or isn't sound.
Your core offering is strong? How can you make it stronger?
Your core offering isn't strong? How can you make it stronger?
Businesses need to have their eyes open, and focus on what's coming, because disruption is a process. You can't just declare you're going to be more innovative (and begin to disrupt yourself), it's something that's taught. The Exponential Transformation rabbit hole is vast, and if the notion of disruption made your hair stand up, there is research to be done.
Perform an internal audit on your company.
Approach your company as if you were a client coming in to buy it. This exercise forces you to ask questions you normally wouldn't, such as: Who would you let go first? Or, what isn't working but you're holding onto for emotional purposes? You may come up with some difficult answers, but it helps educate you about your single point of failure.
These may seem like alarmist practices, but the businesses who survive crises are the ones who have planned and prepared. For a more in-depth lesson on recessions and how to ensure your company survives one, tune into this week's episode.
Key Takeaways From This Episode:
- Overall Takeaways
- The market and the economy are different. The market will react emotionally to things causing panic, but that's not a key indicator of a recession.
- Just because growth slows, doesn't mean we're in a recession, because there still is growth. Don't give into the fear of the slowdown.
- Takeaways for Your Business
- Invest in your core offering and own it. It's not the time to start something new, because someone is most likely already good at that.
- Keep up with what's happening in your industry all the time, but especially on the heels of a potential recession.
- Perform an internal audit on your company as if somebody was going to buy it, because you might learn some great things, including some changes you want to make, and it could inform you for the future.
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Questions about recession planning? Comment below, or email us at firstname.lastname@example.org
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