Working through Tough Economic Times

Image from Unsplash by Mathieu Stern

Whenever there are changes or shifts in the economy, there is talk about the challenges of starting or growing a business. Did you know that many of the largest companies in the world started in tough economic times?

When we focus on what is going wrong — the things we should learn from — there are always opportunities to make things right. Or, an opportunity to solve a problem that people didn’t pay attention to before.

The businesses I’ve started over my career have faced ups and downs just like any other. The key is to focus on what you can control and let go of what you cannot control.

You cannot control the overall economy. But you can control the marketing and sales efforts you are using to attract and retain customers, employees, or partnerships.

How do you do that?

Focus on the numbers. The numbers in sales and revenue, in how many people you speak with about your business, the number of proposals you present, the number of transactions you make in a given time, your expenses, and how you can reduce them or sustain them. All of these numbers become vital to the health of your business.

I encourage you to look at these numbers daily, weekly, monthly, or whatever scenario works for you. During tough economic times the numbers are critical and controlling them becomes vital.

In my business, a transaction generally takes 3–6 months. It starts when someone requests information and we submit a proposal. Putting that proposal together takes 2–4 weeks, and it is an average of 2–3 months before the deal is agreed upon and the work can begin.

It’s different, of course, than if you are selling a cup of coffee where the transaction takes place within a few minutes.

What is your business lifecycle of a sale? It could be different from everyone else you know!

When I see economic trouble on the horizon, I want to start having discussions 2–3 months ahead with the organizations we could potentially support, or with whom we could potentially collaborate, or those who might buy, or re-order from us.

If you wait till the trouble is here to take action, it will be too late, because it might take an additional 1–2 weeks or 2–3 months.

BEFORE YOU GO

We see our blogs as opportunities for dialogue. Please share your thoughts as comments.

1. What can you do to stay on top of your numbers?

2. What can you do to control what you can and let go of what you can’t?

3. What other tools have you used to stay afloat in tough economic times?

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Faris Alami is Founder and CEO of International Strategic Management, Inc. (ISM). He works internationally, presenting Exploring Entrepreneurship Workshops and other entrepreneurial ecosystem — related ventures.