When the Downturn Looms: 4 Strategies to Survive a Slow Season

The conversations carry a familiar tone these days. As businesses head into the final quarter of 2019, the usual anticipation is mixed with concern and a sense of holding back. The indicators may favour a slow season, but any business that has been around for over 30 years will tell you that their best years of innovation and productivity came during the tough times. The key, they say, is to look for opportunities while others are in crisis mode. But those opportunities can be tough to spot without a roadmap! So we’ve put together a few tips that can help you guide your business successfully through a downturn and perhaps come out even stronger.

1. Shift to An Opportunity Mindset
The natural response to a slow down is to cut everything non-essential; and investments in the future often fall under this gamut. While staying lean is critical to manage cash-flow during a downturn, thought-leaders on innovation preach the importance of shifting to an ‘opportunity mindset’. Consider innovating around your business model, with special focus on new product lines, technology and talent development. Since these may require raising capital, do not shy away from exploring financing options, which may, in themselves, be ripe with opportunity during a downturn.

2. Keep Your Options Open
While looking for opportunities is important, it must be done within the context of keeping a basket of options available when the upswing comes. No CEO can ignore the economic indicators happening around him, but those that have found long-term success mix common sense with courage. They innovate to strengthen the core business while nurturing nascent opportunities at a low cost.

3. Develop Talent
A slow period is a particularly challenging time for employees. Because they may not have access to the ‘bigger picture’ and can only respond to what is directly in front of them, they are often left feeling uncertain about their future. It is during the tough times that business leaders have a great opportunity to show their people a level of support that will build long term commitment. Furthermore, in our era of rapidly evolving technology, companies that do not invest in developing their people risk falling behind when recovery begins.

4. In It for the Long Haul
A slow season does not have to signal the end of a business. Lack of innovation, planning and sound fiscal management are responsible for that. Business leaders that view a slow-down as transient, and as a growth opportunity are those that prosper long-term. Exiting a slow season stronger than you entered it requires a commitment to the long haul – much like running a long-distance race. Know where you are headed, keep achievable goals and adjust your pace according to external factors.

Any business has the potential to thrive during the good times. It is when the economy slows that true leadership and innovation emerge to create profitable and sustainable businesses. Each changing economic cycle represents opportunities for those who are willing and ready.