Tough Times Can Bring Big Opportunities
Yes, the economy has been scary and unsettling, but the way you respond can change the direction of your business.
By Ami Kassar
I often start my presentations with a slide showing two football players ready for the play to start. One is on offense, and the other is on defense. You may ask what this image has to do with finance, strategy, and business. The answer is that for a football team to win, it must have solid strategies for both defense and offense.
The same holds for an entrepreneur. At any time, around any corner, an unexpected crisis can arise. But at the same time, new opportunities can also emerge unexpectedly, and if they make sense, you want to be ready to pounce on them.
In times of financial uncertainty, like the ones we are in now, it’s natural to think first of defense: cutting costs, managing cash flow, and ensuring you have a line of credit. I have been writing a lot about these topics lately, and it’s appropriate and timely. That said, there’s another side of the coin. When the economy is going through a turbulent time, the change inevitably creates opportunities that you should be ready to look for and consider. I want to share a few examples.
You may be able to pick up talent for your company that you would never have dreamed about getting during a strong economy. At MultiFunding, we just had an exceptionally talented new member join our team, someone I never would have dreamed of being able to hire two years ago.
It’s also possible that partnering or merging with another company makes sense right now. I recently played matchmaker to two service providers I hope will consider joining forces. They are both struggling right now, but together, I think they could be a powerful force in their market. During good times, I don’t think I would have ever considered this match, but a merger could change the trajectories of their businesses.
It is also possible to buy competitors’ or inventory for a low price, especially from those who might have overstocked during the supply-chain disruptions and now need the cash to continue operating. Change can also create the need for new products and services at different price points. Be sure to consider the needs of your core customers and imagine how you might satisfy them.
Economies rarely grow in straight lines. There are always threats, rough patches, and things to worry about. Fortunately, there are almost always opportunities as well. I hope that you will take advantage of them.
Ami Kassar is CEO of MultiFunding.
