Adversity of any magnitude should make us stronger and fill us with life’s wisdom, however, strength in any form is born from adversity – I wrote ‘Freedom after the Sharks’ from adversity and set up a business in the double-dip of 2008 and 2009, many people have done the same and it is almost a universal theme in the lives of many of the world’s most eminent minds.
As Michelle Obama once said:
‘You should never view your challenges as a disadvantage. Instead, it’s important for you to understand that your experience facing and overcoming adversity is actually one of your biggest advantages.’
Determination, resilience, and persistence are the enabler for people to push past their adversities and prevail.
Overcoming adversity is one of our main challenges in life.
When we resolve to confront and overcome it, we become expert at dealing with it and consequently triumph over our day-to-day struggles.
Have you ever felt that your world is starting to fall apart because of how life tends to bombard you with seemingly impossible challenges?
Have you ever felt helpless and would rather spend your days feeling like a solitary zombie while the rest of the world doesn’t even care that you’re this close to almost losing your sanity?
Well, you’re not alone and the good news is, there are ways to properly deal with and overcome these obstacles.
Reality has a way of reminding us that no matter how hard you try and how good you treat people, you will always have those days, those times when you think the world is against you. During these moments, you often have the urge to either shut down or finally give up and think of the most foolish remedies available to you – both can have long-term damaging effects on you, emotionally and physically.
Today I have the pleasure of introducing another Guest Blogger, Patrick Bailey, who is a professional writer mainly in the fields of mental health, addiction, and living in recovery.
He attempts to stay on top of the latest news in the addiction and the mental health world and enjoys writing about these topics to break the stigma associated with them. His website is: www.patrickbaileys.com
Patrick is going to discuss with us today “Diversification vs. Focus-Driven”
When the Tough gets going, remember this motto: ‘Hibernation is not Survival’
There’s a prevailing rule in a bear market, and that is to play dead when the stock prices are plunging.
After all, the market almost always corrects itself. Stocks operate on a cycle — sometimes up, sometimes down — except, of course, in cases when the economy is undergoing a recession.
Hibernation is different from inactivity, however. You just park your money in treasury bills or certificates of deposits for the moment.
But is hibernation a good tactic for your business during an economic slowdown?
Diversification vs. Focus-Driven
This has been the subject of debate.
Startups that manage to grow will often hit a fork in the road where they can no longer grow with their current set up.
Now, they have to make a choice: diversify their portfolio or bolster their product while they take a more focus-driven approach.
Instead of diversifying, they just ensure that their processes and workflow are more efficient, they automate to limit disruption and enhance the customer experience to guarantee client loyalty.
However, while you may see your bottom-line increase, it could just be temporary. That’s because you are not adding products or service value to your business.
Diversification doesn’t immediately produce results either. There’s no guarantee it will ever deliver the outcome you anticipate.
When the economy is in transition, you will find many competitors fighting over the scraps. This is a high-stakes game that could spell success or the end of your business. However, the alternative is no less disastrous.
The other option is not doing anything. When you pin the future of your company entirely on the hope that the economy will get better, you have the wrong strategy.
If you do decide to diversify, here are some quick tips to cut your risks:
- Don’t veer away too much from your core competency. Diversification doesn’t always mean being different. That’s oversimplifying its definition. Knowing your core competence will give you insight into how other capabilities tie together. Your main goal should be to create a new product or service that is still tied to your core competency in order to bring in new customers.
- Don’t forget your loyal customers. In fact, you need to align your strategies by boosting the value of your core business. You then retain the same customers and offer them another product that matches another — but still related — need.
- Put money into your marketing efforts. Ads and promotions are typically the first things to be sacrificed by companies that are scrimping on the budget. However, you need to make people aware that you have a new product. Even in an economic slowdown, people still buy. That’s consumer resiliency. You need to funnel these customers to your company by showing them that you are the answer to their most nagging questions.
- Timing is everything. Still aligning your diversification with your core competencies, you need to know when to change tack and when to sit it out. Before deciding to diversify, you need to bolster your core business to make sure you don’t lose focus. When the revenues have plateaued, then it’s time to shore up your business and add value by creating another product or service.
- Watch out for your cash flow. Revisit your inventory and your credit policies. When the times are tough, you may need to borrow in order to infuse new capital into your endeavors. However, no bank will offer you a lifeline when you have a shot credit and lousy financial prospects.
The Best Defense is a Good Offense
There’s a saying in sports and even in war: The best defense is a good offense.
This strategy will allow you to take back control of the situation. Rather than wait for the next hammer to fall, you change your approach and bring the fight to the enemy.
This is a scary part, especially when the economic landscape is very fluid. However, there are numerous success stories of businesses that found some opportunities when they decided to go on the offensive rather than wait the economy out.
Of course, there’s no guarantee that this result in a better outcome, but it’s a lot better than playing dead while you wait for the economy to turn.
Here are some quick tips on how to go on offense from defense:
- Diversify. If you are putting all your eggs in one basket, chances are you will lose money if most of them crack. Businesses that rely only on one product will be badly hit during a slowdown.
- Think outside the box. It doesn’t even matter if you are earning less with your new business than you were with the old one. Expanding your network is the only way to learn and earn. Step out of your comfort zone and attend some industry trade shows.
- Reinforce relationships. This is a good way to let your clients know that you can be trusted even when the times are bleak. Don’t cut corners on the quality of your work, and don’t use the economy as an excuse for missing deliveries. In the same vein, get in touch with your suppliers to reassure them that work will continue (although the volume likely will be down).
- Cut fat. Sometimes the only way to take flight is if your business isn’t as heavy. This is a good opportunity to revisit your operations and trim the fat. You will find that your employees won’t be inflexible when you institute changes. They know that the market is very challenging, and they will be more apt to help.
- Form an advisory board. It seems paradoxical to suggest this when the item above tells you to cut fat. But if done correctly, the board can become a rich repository of ideas with which you can follow-through as you go about diversifying your products and services.
- Automation and analytics. Automating your workflow can boost your efficiency. Big data analytics are already being used by companies in order to improve customer experience. Analytics will give you insight into the minds and behaviors of your clients. This, in turn, will help you come up with a product that truly addresses their needs.
- Ask for help. If you are a member of any industry associations, this is the right time to touch base. The government also has some assistance to offer — in terms of technology transfer or financial assistance — to help you keep your head above water.
Lastly, you need to understand that there’s life beyond your business. Too often, you see CEOs with failed marriages and broken families because they prioritized their careers at the expense of spouses and children.
You hear of executives becoming addicted to the drug fentanyl, heroin, or alcohol to help them cope. They equate the failure of the business to their value as an individual.
However, there are more important things in life than being a successful CEO.
Life is all about challenges. Life will push you down if you refuse to push back. It doesn’t matter how many times you stumble. What’s important is how many times you get back up.
Take advantage of the economic slowdown to take stock of what’s important to you.
Bond with the kids, rekindle the romance with your spouse, visit your parents and siblings.
You just might realize that it doesn’t matter if you see yourself as a failure; you will be a hero in your kids’ eyes.
You can contact Patrick Bailey:
Email: bailey patrick780 @gmail.com (remove spaces)
Blog: http://patrickbaileys.com
Twitter: https://twitter.com/Pat_Bailey80
LinkedIn: www.linkedin.com/in/patrick-bailey-writer
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