Times Are Tough – Is hunkering down the right strategy?

I’ve been through enough business cycles in 44 years to know that we are experiencing one of those cycles but with deeper and longer lasting impact than any before my professional career. Yet, I’m of the opinion that tough times for some become opportune times for others. I’m told that fortunes were made even during the Great Depression. So with that theme in mind, let me suggest that the answer to the question, “Should you hunker down in tough times?” is: “It depends on your situation.” Sorry for using the old “It depends” response that so many advisors seem to rely on. However, let me give you more clarity and direction… and what we share with our clients.

In my experience working with over 300 small businesses in more than 80 industries, I see a consistent pattern: if you want to gain market share at the least cost, do it during lean times. What better lean time could there be than now in the past 50 years? If you are a solid company (i.e. strong financially, well-organized, strong team of workers and managers, good sales and marketing systems and staff, excess production/service capacity), then you definitely want to be developing a growth strategy that takes advantage of competitors who have decided to lay low. This doesn’t mean go wild and throw money and other resources into the wind. It simply means that you should develop a strategy, coupled clear focus and an action plan that takes advantage of the weaknesses of your competition and capitalizes on your strengths.

Next week: learn more about the specifics of how you go about this process.

Question: Is your company poised to go after market share in tough times?

Comments are closed.