May 3, 2024
It is fair to say that the business world has experienced a turbulent few years. Business leaders across wide-ranging sectors have been dealing with a barrage of issues, including the lasting effects of the COVID-19 pandemic, soaring inflation, supply chain disruption, geopolitical instability, and shifting customer behaviours. This makes operating a business in 2025 particularly challenging, and this shows no sign of easing anytime soon. With this in mind, this post will act as a guide to managing your business during turbulent times.
First, you should not hesitate to use cash reserves if needed - this is what they are there for! Many businesses have been feeling the squeeze with rising costs and falling consumer confidence, so use cash reserves if you are struggling to stay afloat. If you do not have cash reserves, try to build up 3-6 months’ worth of core operating costs to prevent having to use credit if you find yourself struggling financially to stay afloat. Having cash reserves can also provide peace of mind.
You always want to make smart, informed business decisions, but this is particularly important in turbulent times when a wrong decision could set you back. Data-driven modelling can be used to forecast different scenarios, predict outcomes, and find opportunities to save money. Be sure to use a company with expertise in spreadsheet models to make sense of data and improve the decision-making process.
You do not want to have all your eggs in one basket during periods of instability. This is why you should look to diversify your revenue streams, particularly when you consider that periods of economic uncertainty can often create new business opportunities. Consider adding new products/services, tapping into adjacent markets, and finding ways to use your resources to add new revenue streams.
Outsourcing non-core activities is a smart way to scale without having to commit financially to hiring new staff and all the associated costs. By outsourcing areas like accounting, marketing, and admin, you can access specialist skills while keeping your costs down. This can also be a great way to lighten the load for your in-house team if they are struggling to keep up.
Finally, you should focus on customer retention. You do not want to start losing customers during periods of uncertainty, so you want to strengthen these relationships and ensure a solid customer base. This can be achieved with loyalty programs, special offers, events, and personalised marketing. This should lead to repeat business, referrals to attract new customers, and increased customer lifetime value.
It has been a challenging few years for business owners in all sectors, and this shows no sign of changing anytime soon. This is why it is important that business owners know how to not just survive during turbulent periods but thrive. While it will always create challenges, and some will struggle, there are also always opportunities to excel and grow your business despite uncertainty.
