Businesses have experienced a roller coaster ride in the last 18 months due to the COVID-19 pandemic. Although the business landscape is still unpredictable, there are still ways you can scale your business even during a downturn. Here are some ways to do it:
1) Determine where your business growth will come from
If you have been running your business for a while, you should be able to determine where growth opportunities will come from. For example, is it from launching a new product? Opening a new market? Marketing your existing products to a new demographic? These are ways you can grow your business even when the overall landscape seems bleak.
2) Prepare scenario-based budgets
Make sure you prepare different budgets for different scenarios. This will keep you ready to scale, or not, depending on the market’s current scenario. Your business will be prepared for any kind of situation.
3) Implement change in any “trouble” areas
A downturn may be the best time to check if there are areas for improvement in your business. These might include assessing your current offerings and readjusting growth targets. These will make you more resilient during an economic downturn and prepare your business to grow.
4) Borrow money to grow your business
Most businesses need money to grow, and the best time to take a loan is before you need it. When your company is getting ready to grow, banks are more likely to lend you money. Technically, you don’t need the money to survive but to expand.
5) Stay on top of the situation
In an economic downturn, you’ll need to constantly meet with your team and get regular updates on how the business is doing and how your plans for scaling are progressing. Some companies meet twice a day, instead of twice a week during these times.
6) Make the most out of your network
Now is the time to reach out to people and ask for advice and help. Ask for help from people in your network. It might be a trusted advisor, an investor, or a partner. Talk to the people you need to talk to and inform them of your next move. Get their perspectives and see how they can help you execute your plans.
7) Cash in short-term investments
If you have short-term investments available, now is the time to use them to expand your business or portfolio. Because the future is uncertain, you are unsure if they will give you the returns you were expecting. However, if you are confident in your plans to scale, this investment may be better off financing your current projects.
An economic downturn may be an uncertain time to scale. Many things may not go according to plan. Still, if you have a well-thought-out plan in place, it might be an excellent opportunity for your business. If you can maximize the possibilities before you, scaling in a downturn can be a success.