Between COVID-19, a turbulent political scene and a volatile stock market, businesses in Arkansas and across the country have faced a lot of uncertainty and hardship over the past few years. The businesses that have made it through are the ones that have found a way to adapt to the challenges this uncertain climate has brought.
Since it seems pretty certain that there will be more bumps ahead, it’s worth asking how business owners can maintain growth when things are uncertain (or just downright difficult). To answer that question, let’s look at the three ways business owners can beat whatever challenges come their way — no matter what’s happening in politics or the economy.
#1: Fail Your Way to Success
The first and most important thing you can do to move in a positive direction when things are uncertain is to take action and as soon as possible. Sure, there’s always the risk you may make a mistake in choosing a particular path, but that’s actually a good thing.
The sooner you find out you’re wrong, the better off you are because now you’ll try something else. After all, you may need to try several alternatives and make mistakes to find the right course. You will inevitably take paths that turn out to be dead ends. In fact, many of the things you try won’t work. Don’t let it discourage you.
The only person who never fails is the one who’s afraid to try, and therefore never does, but also never has the opportunity to succeed. You can’t succeed unless you’re willing to risk failing.
#2: Plan for the Worst-Case Scenario
The next key to maintaining growth in an uncertain climate is to plan for the worst-case scenario. Look, it’s unlikely the worst thing that could happen will happen. It rarely does. But mentally preparing for it anyway is a good planning tool. If worst fears should materialize, you won’t be caught off guard, and if things turn out well, you haven’t wasted the effort.
Think about how you’ll recover, finance your next effort and make up the lost sales, investment or effort. Trust me: If you do, you’ll sleep better at night.
Remember, too, that momentum takes on a life of its own. As soon as momentum, whether positive or negative, gets going in your business, it comes with its own head of steam. This is similar to the cycles of the U.S. economy. A strong expansion or a downward spiral gives the impression that it’s never going to end.
So, along with planning for the worst-case scenario, use the periods of expansion to increase advertising, spend money to acquire customers, do lots of prospecting and maybe try some marketing that normally might feel wild and crazy for you. Conversely, when things are contracting, cut all those frivolous marketing efforts, tighten your belt and do all you can to keep morale up.
#3: Be Transparent With Your Team
During the times when the very viability and future of your business is uncertain, you might feel strongly tempted to jump ship. Some of your associates will feel the same. And, if they have little stomach for uncertainty or see themselves on a fast track to success, they will start looking for greener pastures.
It can be a serious blow to your business to lose a critical position during a challenging time, and it adds stress when you’re already suffering from worry and frayed nerves. So, what should you do to help mitigate the chances this will happen?
Be transparent with your people. Disclose that it’s a critical time and that you really need and want them to stay. Give them an incentive, like extra compensation paid in a year or two or stock option grants or end-of-year bonuses that are guaranteed only for people who stick around to collect them.
While you’re being transparent, keep your psychology upbeat and positive. Never demonstrate a lack of confidence or self-doubt. Although you should always own up to business challenges and never try to come off as superhuman, the fact is that, as a leader, you need to convey confidence.
You Can Get Through the Tough Times
There’s no getting around the fact that businesses have ups and downs, especially when there are economic and/or political challenges. As a business leader, those down periods can be some of the most stressful times in your life. You may even wonder if you will get through these difficult periods.
As stressful as they are, though, the past few years have proven that business owners who commit to taking action, planning for the worst-case scenario and treating their people well, can successfully overcome the challenges that will inevitably come their way.
Little Rock native Richard Thalheimer is the founder and former CEO of The Sharper Image, the consumer brand launched in 1979 with three employees. He led the company to annual revenues of $750 million, 200 stores, catalogs, an online store and 4,000 employees. The company went public in 1987 when its stock was listed on NASDAQ. An early investor in Tesla, Thalheimer now runs The Sharper Fund and blogs at TheSharperInvestor.com.
