After starting strong, last year finished on an economic low. According to Reuters, 2018 was the worst year for stock prices since the market crash of 2008. Financial indicators suggest that we’re heading into another correction. Possibly, even a recession.
Driven by the fear of contracting markets, loss of revenue, layoffs, plus a reduction in services and offerings, these projections send most people into a panic.
When I was a CEO, however, I embraced correction. There’s opportunity in a down market; a chance to step into more by providing long-term value that can differentiate your organization. If you’ve planned and prepared, and you’ve got cash in the bank, strategic decisions in the good years can carry you through the bad ones.
The Upside of Down: Positioning yourself as a dependable, long-term industry member
Maintain the relationship—they won't forget who stayed
As competitors leave, make deals that maximize advertising and revenue spend
The Upside of Down: Demonstrating value they’ll remember when the market picks up
Offer short-term flexibility
Find creative ways to deliver more value with less
Help customers navigate through difficult waters
The Upside of Down: Capturing market share
Take advantage of overextended or retreating competitors
Thin out the crowd, take a bigger piece of the pie
Look for good opportunities in alliances and acquisitions
The Upside of Down: Building greater organizational capabilities
Develop resilience and a shared commitment
Provide new growth and leadership opportunities
Many people can manage through the good times, when the market is up and everyone’s making money. Effective leaders navigate the bad times, too.
Have you stress-tested your 2019 plan to include market correction scenarios?
Have you prepared yourself for adversity in the marketplace?
Have you outlined your opportunities with vendors, clients, competitors and employees?
The correction is coming, yet it doesn’t have to be a bad thing. Don’t get down. Look for the upside.