Above the Headwinds:
Survive to Thrive
The soft macroeconomic environment and slowdown in resource-driven economies can seem an inopportune time to talk about the growth of your business and building resilience. And it can feel like one of the worst times to think about selling your business or a tough environment in which to talk about succession planning.
But the reality is that these times of uncertainty have always served as an opportune time to plan and build for the future. President Frank D. Roosevelt created jobs by focussing on building infrastructure in the United States during the great depression. In the 1950’s, President Eisenhower further invested in the Interstate Highway System and championed its construction. This infrastructure would meet a long-term need and was strategically important for the American economy, even though the direct need didn’t exist at the time. Short term losses facing your business can also be the impetus to help you build long-lasting balance sheet value.
To Stay or Go?
There is a very good chance that if you are suffering in your current business model, so are your competitors. By soaring above the headwinds, you have the opportunity to out-compete them by creating new products, new markets and changing your business model. The current challenges can help you bring longer-term value in your company and help you recover from difficult times faster and in better shape.
Three resilient businesses MNP worked with that have successfully balanced their yang with their yin are featured in the accompanying videos. In Video 1, I look at how labour productivity helped one client ride out a business slowdown. For Video 2, Nathan Aravinthan of MNP’s Technology Solutions team explains how digitalization helped a client to upgrade their infrastructure to allow for growth. In Video 3, I discuss how a client tackled declining profit margins as they scaled up their business.
As with these examples prove, it’s not about whether you see challenges as a glass half empty or half full. It’s about being able to empty the glass of water and fill it with Red Bull. It’s about finding innovative ways of running your business that provides balance sheet resilience. And it’s about giving you options to continue to operate the business or to sell for a better price.
Building a Resilient Business
Digitalize for Revenue Growth
Scaling Up When Life Happens