As a Management Consulting organization here at Mesh Digital, LLC we're in a unique position to #mythbust misconceptions across markets and industries around growth during volatile economic times as we're seeing in 2023. Let's dive in to our 𝘁𝗼𝗽 𝟱 𝗕𝗜𝗚𝗚𝗘𝗦𝗧 𝗠𝘆𝘁𝗵𝘀 to bust about growing a company during economic down cycles.
It's impossible to grow during an economic downturn.
While it may be more challenging, companies can still experience growth during times of economic #volatility. In fact, some of the most successful companies in history have been founded during economic #downturns, such as Airbnb and Uber during the 2008 financial crisis.
Cutting expenses is the only way to survive.
While cutting discretionary expenses is critical, companies should be careful not to cut essential investments that can contribute to long-term growth, agility, and market competitiveness assuming they're in a capital position to do so. For example, investing in new technology or marketing initiatives can help a company to adapt and compete more effectively in a changing market.
Customers won't spend during an economic downturn.
While some customers may be more cautious with spending, there are still opportunities to attract new customers and retain existing ones. Companies that offer high-quality products or services, exceptional customer service, and competitive pricing can still succeed during challenging economic times.
It's best to focus on short-term gains.
While it's important to remain agile and responsive during times of economic volatility, companies should also consider their long-term goals and strategies. This may involve investing in R&D, expanding into new markets, or building strong relationships with suppliers and partners.
It's best to wait out the downturn before investing in growth.
While it can be tempting to wait for economic conditions to improve before investing in growth, companies that take proactive steps to adapt and innovate can position themselves for long-term success. By investing in growth initiatives during a downturn, companies can gain a competitive advantage and emerge stronger when the economy recovers.
In fact, counter cycle investments when the markets are down, interest rates are high, consumer spending power is waning may be the best time to refocus discretionary capital towards innovations that will inevitably make a business stronger, or even a leader as market down cycles start to recover.