How to Progress In a Hostile Economy
How to Progress in a Hostile Economy
With the recent changes in government policy, many companies and organisations are finding it harder to make progress. Unless you are in receipt of government funding or grants, then you are probably finding it difficult to grow your business, increase sales, or make a good profit.
In an economy that is over-regulated, overtaxed, and lacking in confidence, people tend to reduce their spending. When spending slows, it becomes harder to sell. When customers hold back, it becomes harder to keep revenue steady and maintain profits.
So how do we maximise our chances of success in a hostile economic and political environment?
The answer is to come back to the essential basics of business. If we get the fundamentals right, we give ourselves the best chance. The essential principles of business success can be summarised as follows:
- Add value to the marketplace
- Spend less than you earn and invest the difference in things that gain value over time
- Eliminate as much waste and inefficiency as possible
1. Add value to the marketplace
Nobody is paid for how busy they are. We do not get paid for how hard we work. We get paid for how much value we bring to the marketplace.
That means making sure your product or service is the best it can be given your current resources. It means focusing on improvements both on the technical side and the human side.
The technical side is about the product or service itself. The human side is about relationships. This includes the way we treat our customers and how we communicate. Business relies on human relationships. So, success means adding value and making customers feel valued.
2. Spend less than you earn and invest the difference
Many businesses run into trouble because they do the opposite. They spend more than they earn, borrow the difference, and use that borrowed money on things that don't hold value.
The better way is to spend less than you earn and invest the difference in things that will bring long-term value. One of the best ways to do that is through training. Trained teams perform better than untrained teams. That is true across every field.
Training increases performance, reduces mistakes, and helps people get the best from each day. It prepares people for pressure. And preparation beats talent when talent is unprepared.
3. Eliminate waste and inefficiency
Most organisations lose time and money on low-value tasks and distractions. Many people choose work based on ease or habit, not priority. That is a mistake. We must focus on what matters most, not what is easiest. Cut out pointless conversations, unnecessary notifications, and non-essential activity.
Keep your focus on delivering value, reducing costs, and improving service. Efficiency means doing the right things in the right order at the right time.
If we get the basics right, cut back on non-essential spending, invest in training, improve product quality, build rapport with customers, and keep a consistent marketing effort, then we give ourselves the best chance to succeed even when conditions are difficult.
This is an economic storm. It was caused by bad policy. But storms do not last forever. The businesses that adapt, survive, and improve will come through stronger than before.
Artificial intelligence can help us become more efficient. We should learn how to make use of it.
If you want to talk to us about training your people to become more efficient and more productive and therefore improve your chances of success and prosperity in the future then please contact us. We would be pleased to help.
Definition: Adding value to the marketplace
In business, ‘adding value to the marketplace’ is a guiding rule that upgrades what you sell, deepens customer trust, gives buyers benefits that outweigh price while keeping your profit, and never stops improving through feedback and innovation. Remove any one of these four pillars and the activity is no longer true value-adding.
Show CG4D Definition
- Improves the product or service so it solves buyer problems better
- Builds strong customer ties through respectful, clear service
- Delivers gain worth more than price while keeping profit margin
- Drives ongoing upgrades using feedback and fresh ideas
Article Summary
When the market turns tough, growth still thrives if you add clear value, spend less than you earn, reinvest in skilled people and smart tech, and cut every shred of waste; these simple acts turn a hostile economy from threat to chance.
Frequently Asked Questions
Here are some questions that frequently get asked about this topic during our training sessions.
What does a "hostile economy" mean for small firms?
How can I add value to customers without extra cost?
Why is spending less than you earn vital in a tough economy?
What are fast ways to cut waste in daily work?
Does staff training really raise profit during a downturn?
How can AI tools help my business stay efficient?
Do economic storms last forever, or should I plan long term?
Thought of something that's not been answered? Ask Us Today!
Did You Know: Key Statistics
The 2024 Employer Skills Survey found UK firms that lifted training spend by just 10% saw average worker output rise 8% within twelve months. McKinsey’s 2024 Global AI Survey reports 57% of companies that scaled AI cut operating costs by at least 10%.About the Author: Chris Farmer
Chris Farmer is the founder of the Corporate Coach Group and has many years' experience in training leaders and managers, in both the public and private sectors, to achieve their organisational goals, especially during tough economic times. He is also well aware of the disciplines and problems associated with running a business.
Over the years, Chris has designed and delivered thousands of training programmes and has coached and motivated many management teams, groups and individuals. His training programmes are both structured and clear, designed to help delegates organise their thinking and, wherever necessary, to improve their techniques and skills.
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