Any successful entrepreneur in the world, regardless of the size of the business, experiences pitfalls and difficult times during their tenure. What differentiates them from mediocre people is that they are persistent under pressure and keep going until the storm is blown away.
All business entities in Sri Lanka, big and small, are going through the toughest patch in history with the ongoing enormous economic crunch and relentless financial downturn. In my long career as a business executive with a number of successful entrepreneurs, I have witnessed how business owners react positively and negatively.
Every time, those who were positive and persistent have come out as winners.
On the contrary, the entrepreneurs who gave up the fight were forced to receive bad consequences.
Consumers cut their spending and adopt stricter priorities during recessions. Businesses often reduce expenses, lower prices, and put off making new investments as sales begin to decline. The cost of marketing is frequently cut everywhere, from communications to research, but this kind of indiscriminate cost-cutting is wrong.
The foremost factor that has to be consciously realised is that the entrepreneur must deal with facts but not fiction. Without freaking out and brooding about bad happenings, businessmen must analyse the situation factually to strategize the next step. Calculated imagination is good as long as it is based on reality.
Mentors
Obtaining advice from experts known personally to the entrepreneur is a must at times of difficulty. Connecting with people and sharing opinions and experiences not only eases the pressure but also paves the way to making the right business decisions.
Most often, entrepreneurs have mentors who encourage them in the first place. Reaching out to such personally known acquaintances can be extremely useful.
Nevertheless, during critical times, businessmen must make sure that they get advice from the right people, as bad advice can end up doing wrong things that can lead to disaster. Similarly, you must avoid looking up to employees for advice because such acts can undermine your leadership. Also, by relying on them, you are dragging them into the storm rather than guiding them through it.
Boosting group spirit to get through difficult times must be done. Motivate your team for the future now more than ever.Whether you’ve been an entrepreneur for a while or are just getting started, you understand how crucial high staff morale is to the success of your business.
Since you are the team’s leader, you should lead by example to begin with. The leader must, in action and in thoughts, display his or her leadership qualities more during troubled times. It is the best time to show professionalism. Stay confident, positive, and cheerful in front of the staff. Even when you have bad news, do not convey it unless absolutely necessary, and if you are forced to break it, do it positively.
Change
Just because the world seems to be on the edge of its seat, waiting to see what change is coming, don’t stop promoting your business. The entrepreneur must not stop advertising or promoting the business because it looks like everyone is waiting impatiently to see what change will occur.
In a crisis, the normal trend is to either stop or reduce advertising. Yet, you will have a lot of work to do whenever business picks up. Your competitors, who will continue communication efforts, will overtake you if the advertising and promotion are suspended.
Also, be extremely cautious about your messages to the clientele and prospects. Targeted and deliberate promotion efforts are required in times of distress. A wrongly worded message can create animosity among prospects with destructive results.
In a seriously divided social situation, apart from their own teams, entrepreneurs must think of bringing everyone together at every possible opportunity, regardless of their personal views. Conflicting views of the company’s public messages can spark emotions, with feelings running high and pulling everyone apart further. Therefore, highlighting all the great things about your products or services should uplift spirits.
Hard time
Business issues such as paying salaries, running costs, and additional unprecedented expenditures can give a business owner a hard time during a crisis. Naturally, they are under tremendous pressure as leaders. It is extremely important for leaders to keep calm and keep a straight head in distress. It is harmful to lose control. The leader’s concentration and mental health are of paramount importance to marshalling troupes through a storm. Therefore, it is crucial to manage your stress as a hard-working entrepreneur.
Entrepreneurs, during a crisis period, must recognise how their clients’ demands and expectations are changing. Many business owners naturally shift their focus away from their clients during a downturn to concentrate on maintaining their company’s viability. To understand how the needs of the consumer are changing, it is crucial to pay attention to them. Discussions with customers will aid in repositioning your company, along with its goods and services, to suit a shifting market.
The affordability of purchasing goods and services should be improved. Customers who are slamming on the brakes in particular will be looking around for better deals. The price war will have an increasing impact on all businesses.Discounts that are easy for customers to use and earn cash back at the register are more successful in hard times than delayed-value promotions.
Price wars
There will be a need for many marketeers to increase the duration and frequency of temporary price promotions. They must also pay close attention to how consumers interpret normal price levels. Customers will resist sharp price increases. Excessive promotions can risk profitability throughout the recovery period. Excessive promotions force consumers to revise their expectations about prices downward. Extreme price reductions might also trigger expensive pricing wars. Finally, improving the trust you have already established during normal times is essential. Consumers who are concerned view well-known, reputable brands and products as a safe and soothing choice in hard times—even in the comfortably wealthy and live-for-today categories.
Hence, it is extremely crucial to provide support messages that can promote an emotional bond with the business and show empathy. As the business battles to regain the ground it has lost, releasing reassuring messages constantly is important.
Setbacks are inevitable in business. Although unanticipated, the current heavily disastrous market situation in Sri Lanka is likely to stay as it is for at least several months. Hence, the business community, particularly small and medium-sized, must learn how to navigate their businesses to serve and reassure customers through challenging times.
It is a fact that when things are uncertain and in the face of a challenge, the natural impulse is to pause. However, mentally strong entrepreneurs are always persistent and push through difficulties to find out what is on the other side.