The knowledge of entrepreneurial survival strategies and tactics will go a long way in helping cooperation’s perform well and sustain profitability in challenging times. Without the capability to respond with flexibility and creativity in times of difficulties, including recessions or depressions, an organization will suffer great loss and will be in jeopardy of closing its doors.
The Entrepreneurial minded have a unique opportunity to make innovative and creative decisions that will keep the organization competitive. Coming up with new products, relationships and connecting with greater resources is a possibility.
The first thing organizations must do in tough times is to keep the End Vision in mind. Great companies refuse to panic. They are willing to be open- minded and flexible in their maneuvering to get around the seasonal downtimes.
No one knows how long a recession may last, but an organization must have the entrepreneurial capacity to sustain profitability and overcome the crisis.
Common Survival Strategies
Response in Hard Times
The organizational response in challenging times is crucial. CEO’s and upper-level management must recognize the need for change before it is too late. When recessions hit, develop a sense of urgency or it will take a quick dive into nonexistence. Business after business crashed during the recession of 2008 before they didn’t respond appropriately to the crisis. Not having an entrepreneurial mindset, many business owners thought they could just ride it out and things would soon get better. However, things got worst and many small organizations, both new and old, bit the dust.
When demanding times hit, during the recession years of 2008 and beyond, many companies downsized, by closing multiple branches across the U.S. Thousands of employees lost their jobs and massive inventories were reduced to manageable sizes.
Downsizing is an excellent choice, especially for smaller companies or for organizations which don’t have enough capital or monetary resources to get through the difficulties.
During tough times, many organizations outsource services, including payroll, deliveries and even the manufacturing of a product. Although it will no longer have absolute control of the product, a company will save money.
Many companies question outsourcing, fearful that there is a chance that the organization’s secrets will be revealed to a third party. However, what must be considered is whether or not an organization can survive a severe recession? If not, allowing few secrets to be revealed isn’t as bad as closing the doors for good.
Partnering with Others
Aligning with another organization in bad economic times isn’t a bad choice. Such decision takes entrepreneurship to a new level. First, combining resources is a way to guarantee the survival of both organizations. In addition, forming an alliance will give both companies the opportunity to work together and come up with innovative ideas for products and services that wouldn’t have been possible if they had not put their minds together.
Thriving on Brand Recognition
Great organizations with a large following of loyal customers may be able to survive economic downtimes based on brand power alone. Google and Tiffany (Jewelry) Incorporated were both able to survive tough times based on the popularity of their signature products.
This is the advantage that large, popular organizations have over small or little-known companies in the marketplace.
Diversifying the product line
Having more than one product gives an organization an advantage in times of difficulty. When companies only have one item to offer the consumer, the chances of survival are slim if that product is no longer selling. Therefore, diversifying the product lines with various accessories will go a long way in attracting sells.
A one product company spells doom in tough economic times.
Great companies, including google and Microsoft, created new product lines which sold alongside their signature item. This creative activity allowed them to thrive in during the 2008 recession and beyond.
Cooperate entrepreneurship is a godsend in times of economic crisis. The key to survival is the ability to make quick but effective decision mingled with risk. Innovation and creativity should be allowed to operate in its purest form. Leadership must keep the End Vision in mind to sustain hope, profitability and lead the organization into a brighter future.