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Uncertainty, turbulence and rapidly changing business environments pose serious threats to entrepreneurs. Businessmen trim their sails for the weather all the time when looking for new markets, reconsidering their approaches to team management and taking risks to survive the competition. Entrepreneurs cannot indulge in being passive in difficult times.
Undoubtedly, despite the pitfalls, crises do give rise to new business ideas and opportunities. Roughly half of Fortune 500 companies were founded in times of recession or economic crisis, according to Morgan Stanley. Here are seven tips on how to overcome adverse externalities and successfully develop your business.
Related: 4 Steps to Take as an Entrepreneur When the Going Gets Tough
1. Be able to take risks
This is the basics of entrepreneurship — it is where the path of a businessman begins. Any business is about taking risks; hence, the ability to handle them should be innate to an entrepreneur. Businessmen must be able to deal with risk all the time. Importantly, failure should not be viewed as a setback but as a stepping stone to future growth.
Even if a decision results in failure, don’t overreact or dramatize the situation. See it as an educational experience that puts you on a steep learning curve. This is your golden opportunity to try again, this time capitalizing on your failures and taking into account the path you have traveled. Another recommendation is to take calculated risks, because sometimes as the saying goes, a bird in the hand is worth two in the bush.
2. Think outside the box
As a child, I wanted to become an oceanologist and learn the mysteries of the deep blue ocean. When still a preschooler, I learned to clearly pronounce oceanologist. I believe that my aspiration translated into business, and this led to my holistic strategy about blue oceans. In other words, it’s all about niches with little competition. Today is the time of “out-of-the-box thinking” — to think differently from everyone else and have a creative approach to solving problems. Be sure to have a brainstorming session in your company so everyone can contribute. Even if the ideas seem bizarre and impractical at first, record them and ponder them later.
3. Enjoy what you are doing
Never take on a job if you don’t like it. In fact, studies by Gallup show that employees who are emotionally engaged in their work are 17% more productive and 23% more profitable than those who are disengaged. This principle applies to entrepreneurs as well. Never do something that feels futile, isn’t aligned with your vision or doesn’t work out as you wish. It’s really the same as living someone else’s life.
If running a business gives you pleasure and positive vibes, your endorphin levels surge, bringing you unconditional happiness. Money should not be the key motivator. I hardly noticed it when I made my first million — I was just doing what I liked, never paying much attention to the bottom lines. I was not awestruck by seeing windfall profits; instead, I felt immense joy at being able to come up with something valid. As the ball got rolling, there came a feeling that this is a good start, life is wonderful, and there are many interesting things ahead.
Related: 10 Inspirational Quotes to Keep You Going Through Hard Times
4. Pick the right team
Business is done by people, and the people you choose will condition the success of your business. The compatibility of life and strategic values has always been important to me, especially in creating ideas and achieving goals. If people care about creating something worthwhile, aspire to reach great heights and achieve something significant, they are our tribe.
For me personally, this is the first criterion when hiring employees. The second important characteristic is emotional intelligence. Business is about communication — the ability to get on with people, collaborate effectively and manage people’s emotions and your own. The third superpower is energy, persuasiveness and consistency in achieving your goals. And the fourth essential factor is analytical intelligence (i.e., IQ, knowledge and expertise necessary for a particular position).
5. Be ready for a crisis at any time
Crises are inevitable. You will face challenges all along the way, especially if you are playing for long-run keeps. Build your business with the understanding that turbulent times can come at any moment. Much depends on how you prove yourself during this period since a crisis is not only a test of strength and resilience but also a time of new opportunities. Crises can come out of the blue, and if you’re unprepared, they can ruin your business. As the ancient Romans said, “Spera meliora, para te ad peiora” — hope for the best, prepare for the worst. This remains the best strategy for any entrepreneur.
6. Set long-term goals
When I started the business, there were no strategies or KPIs; all people wanted was to buy a car. As the business was growing, I began planning farther ahead and setting clear objectives. Every businessman has to understand where they are heading and where they wish to be in five, 10 or 20 years. Long-term goals are set for 10 years or more. Think about the level and scale your business should be at 10 years from now. What business tasks have to be solved over this decade? What new businesses would you like to dive into? This is essential because it affects your motivation and the incentives of your employees; it also significantly increases labor productivity.
Related: 7 Ways To Stay Resilient As a Leader During Turbulent Times
7. Save clients’ time
A well-known rule in business goes like this: Whoever saves the customer’s time will make money. Business ideas often stem from some personal experience as a consumer, especially when the service left much to be desired — being either too bad or too slow — and this sparks a burning desire to make life better and more convenient.
The development strategy of our fintech services is based on the urge to save users’ time. Now, there is no need to go to the bank and fill in the documents to take a loan — just download an application on your phone and get the required amount online. Whoever learns how to serve clients faster while keeping good quality of service will gain a competitive advantage.