The world today is in flux. The era of predictability is well behind us. We now navigate a world filled with uncertainty, complexity, and ambiguity, where we work on ever-changing currents that can never be experienced the same way twice.
No place has embraced this reality more than the business community, regardless of size or sector.
It is a challenging time to be a business leader, but it is also a time that reveals those who can endure. As the saying goes, “Tough times don’t last, but tough people do.”
As a business leader, it’s crucial to consider new strategies during challenging times like this, especially with inflation hitting an all-time high of 34.2% in June 2024, according to the National Bureau of Statistics (NBS). While forex is available, the volatility in pricing poses a significant concern for businesses.
The recent government policies have not yet improved livelihoods in the short or immediate term. The cost of food has skyrocketed, and the significant reduction in consumers’ purchasing power is alarming. In times like these, business leaders should consider taking strategic steps.
Understand the Universe of Your Business
It is true, “no one can know everything.” Yet, a comprehensive understanding of your business environment is beyond essential. It is indispensable. Today, ‘understanding the business environment’ is not just a nice-to-have, but a must-have. The key to understanding the universe of your business lies in data. As the saying goes, data is the new currency. Without it, you are entering a fiercely competitive battlefield with inadequate tools.
To succeed, you must grasp every aspect of your business, from end to end. Who is your target audience? What are their needs and desires, and how do they want them fulfilled? What are the best channels or routes-to-market to reach them? How do you generate and stimulate demand for your products or services? What does your repeat purchase rate look like? Who are your competitors, and what are they doing better that you can improve on to gain an edge? Do you have a niche? Should you develop one? If so, how can you create a niche that makes your brand loved and admired?
It’s crucial to be methodical in answering these questions, and that is where data comes in. Data helps you profile and develop tailored strategies to win. It is your weapon for understanding your business universe. However, while being data-driven, it is important to also recognize and accommodate the nuances and dynamics that data may not capture. You need to balance being data-centric with strong emotional intelligence to make informed decisions that will help you truly understand your business environment.
Dimension Your Growth in Context
The current operating environment has brought about drastic changes that significantly impact business profitability and sustainability. This is not the time to be overly excited by what may seem profitable on the surface but could turn out to be unsustainable in the long run when properly analysed in context. The effects of currency devaluation are a clear example of this.
It’s also important to consider your focus. You might achieve business growth through price increases, but if your sales volume declines, this could pose risks in the long term. Volume growth is the preferred path for every business.
To achieve volume growth, you need to balance the six + Ps: price, place, product, promotions, people, presentation, partners, and passion. Volume growth should be structured to reflect these factors for long-term success. It must be driven by meeting demand and understanding changing patterns, trends, dynamics, and market nuances, which will ultimately lead to bottom-line growth.
Serve and Build to Last
Every business aims to win, but the key to lasting success lies in serving the ultimate authority: the consumer. While the goal is to win, the path to victory is through genuine service. Some leaders may rely on flashy tactics to impress, but these methods often lack durability and substance.
To win by serving, it is crucial to understand your consumers deeply. Ask fundamental questions: What are their needs? How can you meet those needs in the most cost-effective way without compromising quality?
Serving effectively may require unconventional approaches, but always maintain your commitment to compliance and integrity. If your current cost structure makes your business slow and cumbersome, adjust it to become more agile.
True service involves working with the right people, offering the right products or services, and implementing the right processes. This approach not only drives immediate success but also builds a foundation for long-term sustainability. When you serve and build to last, you create enduring opportunities that extend beyond your tenure as a business leader, positively impacting the socioeconomic fabric of your community. Serving with a focus on lasting impact allows you to fulfill your purpose and stand out in the market.
Due Diligence Remains Key to Winning
In the face of pressure to cut costs, it may seem tempting to take shortcuts and compromise on due diligence. However, this approach, while it may provide short-term relief, is not the right path to long-term success. No matter how intense the pressure or how common these shortcuts become in the industry, adhering to due diligence is crucial to winning – even when no one is watching.
Business leaders must remember that their role is to enhance lives, not to harm them. This means maintaining top-notch processes and operational standards. For large corporations, it is especially important to extend these best practices to your entire ecosystem. You are only as strong as your partners and the broader network you operate within. Your ability to reach and serve consumers effectively is directly influenced by the quality of your ecosystem. Therefore, it is essential to support your value chain in adopting the right standards and maintaining a rigorous approach to due diligence.
In challenging economic times, business leaders must demonstrate resilience, strategic thinking, and a commitment to long-term success. True success comes from building a business that thrives while positively impacting the community. Leaders who focus on lasting growth and integrity will secure their future and leave a meaningful legacy.
Remember, tough times don’t last, but tough businesses do.
Godfrey Adejumoh is a Global Business Communications Strategist and Thought Leader.
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