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According to Fitch Ratings’ 2024 Global Economic Outlook report: Down 2.1% With global economic growth expected to slow this year to 2.5% by 2025, CEOs and other executives need to find firm footing in volatile conditions. Times like these require bold leadership and a strong foundation to sustain growth.
Best-selling author Marshall Goldsmith says, “Doing things the same way won’t get you to where you’re going next.” The challenges of the current situation call for new approaches and solutions to protect and even lead growth in 2024. I’ve provided strategic advice to CEOs of public companies, family offices, and all kinds of businesses. I have a firm grasp of what top leaders do to stay effective in uncertain times.
Continuously growing, Recession-proof Grow your company by following the seven strategies detailed below.
1. Create a worst-case scenario budget
Slower global economic growth means a lower potential ceiling and steeper bottom. It’s important to take these realities into account when budgeting and spending. Having a strong cash reserve in your business gives you more options and financing. Dave Ramsey says you should have at least six to 12 months of emergency savings. Do it for your business.
This approach gives you breathing room during slow periods, giving you the freedom to find solutions, innovate, and pivot as needed to keep your company healthy. For example, one CEO explained that revenue has slowed this year and he was facing the possibility of laying off three of his best staff members. But having a savings fund set aside for, say, a year would give him the breathing room to keep his best staff on board and weather the downturn.
Related: You won’t have a strong budget unless you follow these 5 tips
2. Establish expertise and differentiate high-value services
Does your business lack quality lead flow? Are you frequently lowering your prices to attract customers? If so, consider the following: In today’s fluid world, your target market consists of B2B and B2C customers looking for a trusted industry leader and problem solver. Trademark Value So this is really important. Here’s how you can instill this in your business:
- Position your brand as an authority and influencer in your industry.
- To increase and leverage your brand’s market awareness, invest in improving your positioning. Partner with other reputable and well-positioned businesses to help strengthen your brand’s position.
- Collect customer testimonials and build up positive reviews. Place them prominently on your website and social media profiles.
Take all the steps you can to establish your expertise and differentiate your high-value services, and the clients will come flowing.
3. Build thriving relationships
Build on those foundational pillars by nurturing relationships and opening yourself and your business to collaboration, mentorship referrals, and resource sharing. Doing so establishes goodwill and healthy partnerships that provide a layer of security for your company.
Professional and personal partnerships come in two forms:
- A partner who shares your values.
- Partners with complementary skill sets.
Making these connections may mean stepping into new spaces, stepping out of your comfort zone, or even building a community from the ground up. In these cases, providing value is a surefire catalyst.
Analyze what you can do to solve your desired potential partner’s problem. Implement and propose a solution. Present this person with a groundbreaking partnership opportunity or inspiring idea. For example, if you notice that a high-ranking CEO has written a book and spoken widely, but would like to speak on stage at TEDx, you can introduce yourself and present the opportunity at the start, providing value by doing your research beforehand.
Once you’ve built a connection, be sure to support the other person whenever they need it. Be intentional about communicating the parameters you expect from your mutual partnership so everyone is on the same page.
4. Keep your reputation intact
A great reputation will give you an edge over most competitors in your industry. Don’t let minor missteps or sloppy shortcuts ruin all the hard work you’ve put in. Thanks to social media, when your brand makes a mistake, it’s more visible than ever before. Reduced revenue This is a time when your business cannot afford to take a hit. Get ahead of potential problems by rigorously vetting sources, vendors, and clients, and establishing processes and procedures to ensure you are working with colleagues, partners, and peers who have high integrity.
Additionally, be conscious and intentional about your image on social media. Scrutinize every post and ask yourself if it will enhance or damage your reputation. If your gut feeling doesn’t agree, trust it and go ahead.
5. Work with great people
You and your company can only work with the best staff, talent and partners. Many over-promise and under-deliver. They take away your resources and you end up losing money. Valuable timeBefore entering into a business partnership, establish parameters to ensure value alignment and optimal use of time — that way you can avoid damaging your reputation because you’re trying to squeeze juice from a rotten turnip.
For example, I spend time on the call asking specific questions about the parameters of the project and what success looks like for everyone. At the end of the call, I ask when the deadline is for receiving the informational materials and schedule a call to discuss next steps. If I cancel the next call or miss a deadline on a small item, I make a mental note to deprioritize it in the future. Protect your sphere of influence. People won’t be there until they’ve proven themselves.
6. Stay calm and collected
As AI and automation become more prevalent in the workplace, soft skills like emotional intelligence (EQ) and empathy are gaining importance. Still, emotions shouldn’t hinder your professional survival. For example, external factors aren’t about emotions. Therefore, your reaction to external factors shouldn’t be emotional. Unstable geopolitics and unforgiving economic factors may hinder your progress, but they shouldn’t destroy you. It’s up to you to assess, analyze, pivot, and improve your skills accordingly.
Deliver on your promises. Stay resilient. Prove you’re an unwavering force. In times of uncertainty, people rally to leaders. If you can prove yourself a leader, you’ll gain a foothold in the ecosystem when things stabilize.
Related: How to Advance Your Career Through Upskilling and Re-Skilling in Your Current Role
7. Evolve your skillset
AI is driving rapid technological advancements and changing the landscape of many industries at a time when the global economy is on the brink of decline.
Here’s how you can improve your skills and familiarize yourself with current and future tools to stay ahead of the curve.
- Earn a new certification in a complementary business field.
- Gain practical knowledge of AI and coding.
- Learn the nuances of deal structuring and negotiating.
- Invest in cutting-edge technology training for your team.
These seven strategies will set you up for sustained success in 2024 and beyond.