According to Fitch Ratings’ 2024 World Economic Outlook report, global economic growth is expected to plummet by 2.1% this year. CEOs and other leaders must find firm footing in uncertain conditions. Bold leadership and strong foundations to maintain scale are essential in these times.
As best-selling author Marshall Goldsmith says, “What got you here won’t get you there.” The challenges of the current situation require new approaches and solutions to protect your business and even drive growth in 2024. expert advised CEOs of public companies, family offices, and all kinds of companies on strategy. you know exactly what top managers need to do to maintain success in uncertain times.
Follow these seven strategies to keep your business growing and resilient:
1. Worst-case budget
Slowing global economic growth means lower potential highs and steeper bottoms. It’s important to weigh these realities when planning your budget and spending. Injecting cash into your business gives you more options and scope. Dave Ramsey recommends setting aside at least 6-12 months’ worth of salary as an emergency fund. Make sure you do this for your business.
This approach gives you breathing room during quiet times, giving you the freedom to work on solutions and innovate or pivot as needed to keep your business intact and healthy. For example, one CEO explained that they were facing a decline in sales this year and the layoff of three of their best employees. However, with a one-year savings fund, they might have an opportunity to retain their best employees and weather the downturn.
2. Build expertise and differentiate your high-value offerings
Is your business missing out on an influx of quality leads? Do you often lower your prices to attract customers? If yes, then you should consider the following: In today’s changing world, your target market consists of B2B and B2C customers who are looking for industry leaders and problem solvers they can trust. Therefore, brand equity is very important. Infuse your business by using the following methods:
- Position your brand as an authority and influencer in your industry.
- Invest in improving your positioning to improve and leverage market perception of your brand. Collaborate with other reputable, well-positioned businesses to strengthen your position.
- Get referrals and collect positive reviews from your customers. Place these front and center on your website and social media profiles.
Do all you can to establish your expertise and differentiate your quality products from your competitors. The customers will follow.
3. Cultivate Successful Relationships
Build on your foundation by cultivating relationships and opening yourself and your organization to collaboration, mentorship and resource sharing. This creates goodwill and healthy alliances and provides an additional layer of security for your business.
Professional and personal partnerships come in two forms:
- Partners who share your values.
- Partners who have complementary skills.
Making these connections might mean entering new territory, stepping out of your comfort zone, or even building a community from the ground up. In these cases, providing value is a surefire way to start.
Analyze what you can do to solve your desired partnership candidate’s problem. Implement your solution and make a proposal. Present this person with a groundbreaking partnership opportunity or an inspiring idea. For example, if you find out that a senior CEO has written a book and given many talks, but would like to speak on the TEDx stage, you can add value by introducing yourself first and presenting the opportunity. You’ve done your research beforehand.
Once you’ve connected, you’re always available to help that partner if needed. Be intentional about communicating the parameters of your expectations for a mutual partnership so that everyone is on the same page.
4. Maintain a Good Reputation
A good reputation gives you an advantage over almost all competitors in your industry. Don’t let one small mistake or sloppy shortcut ruin everything you’ve worked for. Thanks to social media, brand mistakes are more visible than ever, leading to shrinking profits when companies can’t afford such losses. Get ahead of potential mishaps. Thoroughly review your sources of supply, suppliers and customers, and establish processes and procedures for working with high integrity with colleagues, partners and coworkers.
Pay conscious and targeted attention to your image on social media as well. Carefully examine each post and ask yourself if it is helping or hurting your reputation. If it doesn’t pass the gut check, trust your gut and move on.
5. Work with the Best Talent
You and your company can afford to work only with top performing employees, talent and partners. Many promise too much and deliver too little. They take resources away from you and cost you valuable time. Set parameters before entering into a business partnership to ensure value alignment and optimal use of your time. This will prevent your reputation from being tarnished by trying to squeeze the juice out of a tainted beet.
For example, you spend extra time on the phone asking specific questions about the parameters of the project and what success looks like for everyone. At the end of the call, you ask when to receive materials and arrange a call to discuss next steps. If they cancel the next call or miss a deadline on a minor matter, you notice and deprioritize them in the future. Protect your sphere of influence – People need to prove themselves before they can get in on things.
6. Remain calm and collected
As AI and automation become more prevalent in the workplace, soft skills like emotional intelligence (EQ) and empathy become increasingly important. However, emotions should not affect your professional survival. For example, external factors are not about emotions. Therefore, your reaction to them should not be emotional. Unstable geopolitics and relentless economic factors may hinder your progress, but they shouldn’t destroy you. It’s up to you to assess, analyze, adapt and improve your skills accordingly.
Keep your promises. Stay resilient. Prove yourself an unshakable anchor. In times of uncertainty, people flock to leaders. If you can prove yourself a leader, you’ll gain a foothold in the ecosystem when things stabilize.
7. Develop your skills
AI is driving technological advancements on a rapid trajectory, changing the landscape of many industries as the global economy threatens to contract.
Follow these paths to improve your skills and stay ahead by familiarizing yourself with current and future tools:
- Earn a new certification in a complementary business field.
- Gain practical knowledge of AI and programming.
- Learn the intricacies of deal design and negotiating.
- Invest in cutting-edge technology training for your team.
Leverage these seven strategies to set yourself up for sustainable success in 2024 and beyond.