Let's get the bad news out of the way first.

Yes, there may be another recession coming.

But a recession, in and of itself, isn't a bad thing. Think of it like the economy going on a diet.

1 - Remove the Excess

Diets focus on cutting excess, not the necessities. There are two kinds of excess in the business world. The first are luxuries, such as fancy events, entertainment and excessive marketing. Even if you run an events or marketing firm, the question you will need to consider is: how do we make ourselves indispensable to our clients? The second excess are businesses that are unethical, fly-by-night, cowboy types. These are the first to shut down during a recession, and it's their exits that typically make the number of "failed" businesses so high. Don't let it scare you...these guys were never going to last anyway.

2 - Temporary

Diets are temporary. They often don't last forever, and neither do recessions. Even if it isn't the best or easiest time, focus on the value you're delivering. In every industry, some businesses will make it through. You need to focus on what will carry you over to the other side and yes, managing cash flow is crucial. Speak to your accountant about contingencies, and temporary measures you can implement to relieve some of the pressure on the business. 

3 - Easier with Others

Diets are easier to stick to when you have a support network around you. In your business - who are the people that need you to succeed? Your team members, suppliers, strategic partners, investors, and your business coach. From negotiating better payment terms to communicating openly with your team, ensure you are leaning on your network for support - we are #inittogether. 

4 - End Result is Always Better

The situation at the end of a diet is better than the situation at the start. Diets end when the body is healthier. Recessions end when the economy is healthier. Of course, it's better to maintain good health so we don't need diets, but it doesn't normally happen that way. There will always be pollutants to a healthy system, and diets and recessions will be necessary to flush them out.

Your primary focus should be on scaling your company in a way that it can weather the storms, for there will be storms. It starts with getting the basics in place, allowing you to run your business from a position of strength and control, rather than firefighting problems. Then you build the money, not just revenue but profitability and predictable cash flow. Then comes the sustainability of both...and that's all there is to it. 

To support SMEs through this tough time, the Kaizen team are running free-to-attend online events throughout April 2020, in collaboration with our partners DMCC, In5 Dubai and AstroLabs, where we’ll discuss the changing business landscape, and what steps to take to stay ahead of the curve. Get in touch if you’d like to learn more. 

Here’s to a phenomenal 2020

About the author

Murtaza Manji
Business Strategy & Leadership Coach
Entrepreneur, award-winning business strategy coach, and international speaker, Murtaza Manji is the co-founder of Kaizen Consulting Group which he set up in the UK in 2011 before expanding to the UAE and the USA. The company has evolved significantly over the years with ambitious plans to expand further. His vision is to positively impact the countries the Group operates in by supporting clients to create lasting values and legacies.

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Murtaza Manji - Managing Partner of Kaizen Business Consulting Group Dubai
Kaizen’s team of experts have worked with 1050+ companies across 16 different industries worldwide to achieve higher profits, greater productivity, and sustainable growth by creating efficient systems and structure. Get in touch today to see how we can support you.