For business owners who aren’t afraid to go against the grain, tough economic times have seen in the latest economy news provide excellent strategic chances. Many of the hundreds of customers I help navigate economic shifts with have similar concerns.
Here’s what I’m now recommending to clients to help address many of those questions:
Paid Rates Need to Be Enhanced
When many businesses are laying off workers and decreasing pay, you may set yourself apart by demonstrating your appreciation for Human Capital by increasing employee compensation. Contrary to popular belief, workers should be considered assets rather than liabilities in a business.
Smart business owners know that pay boosts during tough economic times have a much more significant impact on employee loyalty and output than similar increases during economic prosperity.
This is the moment to bring out the best in your team. Raise their pay to show that you value their work and are willing to invest in their future.
Those bold enough to act now can take advantage of some incredible discounts. Inventory, new employees, office supplies, and even real estate for future development are all examples of undervalued assets that can be purchased at discounted costs.
Focusing on boosting output is considerably more beneficial to income growth than focusing on reducing costs.
Put your money where it will do the most good.
Cancel Your Retirement Savings Plan
Being successful on your terms is the finest pension plan there is. Even though qualified plans are seen like holy grazes, you can’t afford to keep your money locked up in retirement accounts.
In the long run, though, your firm is a much better bet than a 401(k) because of the steady stream of income it may provide without jeopardizing your initial investment. Put money into yourself and your company. You may better capitalize on economic disruptions and their potential by increasing your liquidity.
Trust a single possibility.
You should not worship at the altar of diversity while others do. Now is the moment to examine your company’s “Soul Purpose” and direct all of your efforts in that direction.
Who are you, exactly? For what purpose do you exist? To whom are you loyal? In what areas may you have the potential to achieve global dominance? In trying circumstances, be loyal to who you are and give up the indulgences you’ve granted yourself.
Start Your Studies Again
Set aside your preconceived notions about how the corporate world, economics, and marketing work. The world is constantly evolving. Thus, successful people will use downtime to further their knowledge and hone their leadership abilities.
People that are constantly learning and growing as business owners are the ones I know best. Because the added edge and connections provided by continuing education may be the difference between those who survive the economic storm and those who don’t, this is even more important now.
Suppose you want to succeed in an era when everyone is shrinking their workforces, as seen in the latest economic news, slashing their budgets, struggling to stay afloat, and desperately trying to diversify. In that case, you need to do the opposite: invest in your people, prioritize spending where it will have the most impact, stay ahead of the curve by continually learning, and keep your sights fixed.