Every business undergoes certain ups and downs. During good times, it becomes important to take the right steps and stay prepared for the bad times. This basically means that business owners need to have a proper plan in place for when the economy takes a turn for the worse. Kavan Choksi mentions that following a robust growth strategy during turbulent times is among the best ways to scale a business. It can help the business to weather the storm and in fact come out of it in a better position.
Kavan Choksi discusses the need of growth strategies
Growing a business is easier said than done. Companies of almost every size and types face a number of challenges that suppress their growth, especially amidst a turbulent economic landscape. No entrepreneur can risk winging it in these situations. They need to have a solid growth strategy to keep their business afloat and ensure its growth. A growth strategy is different from an annual plan, and often deal with scaling a business. It addresses how the business is going to evolve to meet the challenges of today and in the future, provides it with a purpose, and answers questions about its long-term growth. Growth strategies are critical as they keep a company working towards its important objectives and goals that go beyond what is happening in the market today.
When scaling a business as per the growth strategy, a lot of business owners think that it is best to wait till the economy is doing well. However, in reality, sticking with the growth strategy during economic strategies can actually be a great opportunity for a business to growth. There are a number of reasons for this. Firstly, there are usually a lot more skilled and talented workers available during economically uncertain times like a recession. With more people out of work, a business shall have a larger pool of trained and competent talent to make their choice from. Secondly, as many businesses end up scaling back during a recession, there is often more room for companies still growing. Moreover, economic uncertainties can actually create new opportunities for businesses to expand. For instance, during the last recession, a number of businesses closed their doors. This ultimately created opportunities for other companies to move into those markets and fill the void.
As per Kavan Choksi, economic uncertainty often cause a shift in consumer spending as well. This can create growth opportunities for certain businesses that provide goods and services that meet the new demands of consumers. Hence, rather than letting their business stay stagnant during economically turbulent times, business owners must stick to their growth strategy and try to find ways to make the best possible use of the prevailing situation. Even though economic uncertainties are undoubtedly challenging for businesses, they do present many new growth opportunities. Business owners who smartly follow their growth strategy and take advantage of these opportunities are able to emerge from the situation stronger than ever. In fact, businesses that scale during economically turbulent situations have greater odds of surviving and thriving long term.