In times of crisis the main focus for a lot of companies is to just stay alive. Not going bankrupt is a victory.
No matter what industry you’re in, there’s a pre-crisis scenario and a post-crisis scenario. Let me give you an example.
On the pre-crisis scenario we have 6 companies. They all have their share on the market.
Company A and B are the big ones with a total of 64%. The other 36% is shared between C, D, E and F. Usually this percentages don’t change drastically.
The second scenario represents a crisis scenario where:
- Company “F” and “E” went gone bankrupt because they didn’t have enough cash to sustain the business while the storm was passing.
- “D” got acquired by “A”
- “B” made a partnership with “C” that payed of and both managed to increase their market share.
In the end, if a company doesn’t have enough capital to keep the engines running it will either go bankrupt or get acquired by the big ones. The only way out of this is to be smart and form a partnership that helps saving the company.
So what can a company do to grow during a global crisis?
1- Find free talent
Those companies that went down probably had talented people who just became free agents. Find which ones would bring the most value to your company and hire them.
2 – Acquisitions
If your company has cash like our company “A” you can pick up businesses that are going bankrupt at a discount. This way you will get their market share and assets. This will pay-off in the future.
3 – Focus on your best
It is so much better to have one specialty and be the best at it, than to do everything and not get anything done right.
4 – Invest in Tech
Companies that can work from home have a huge advantage here, companies that could not make a quick shift to fully remote have either gone bankrupt or are in a very bad spot right now.
5 – Strategic Partnerships
During an economic crisis companies that put aside their ego and work together will come on top. What strategy can you implement with your competitors that will help you both to leave this crisis with a brighter future.
6 – Over Communicate with Clients
Let your clients know that you care about them and do anything that you can to help them out. For example, I got an email from my gym letting me know that no one would have to pay April’s membership and those who didn’t cancel the subscription would get a 10% discount for the rest of the year. I’m really glad that they cared and I’m planing on staying there unless something major changes, like if I move to a place far away.
7 – Social Issues
Everyone is struggling right now so you have to find a way to make it better for your costumers, you can send valuable gifts like masks or food or whatever makes sense. Help out those in need and after when things get back to normal people will remember you and you will come out stronger than before.
Remember, the ones who will grow stronger after this global crisis are the ones who can come up with the best strategy.
See you next time.