“It may be painful and last a little longer than expected, but eventually, everything recovers, rebounds and excels.”
Every recession causes financial strife. There is more risk in markets, and more risk equates to fewer investments and less spending. In Australia, 600,000 people are out of work, even with the help of the JobKeeper and Jobseeker programs. A reduction in consumer spending or a lack of customers causes some businesses to slow down dramatically, or also go out of business entirely.
These slowdowns trigger job losses, and cost-cutting initiatives as business strategies are re-evaluated. At Strategy Hubb, we are focussed on finding solutions to combat this health crisis, so that it does not become an enduring financial crisis.
As consolidations take hold, and the appetite for risk is significantly depleted as businesses buckle up for turbulence. Turbulent times in industry can either strengthen or weaken your company. They can make your company stronger by bringing to light the hidden fractures within your organisation, or they can fast track the demise of the business. If recognised early enough, you could have the time to fill in the cracks that would have inevitably caused the company to crumble.
With so much negativity in the global market, what can businesses do to stay afloat? The current disconnect between markets and the new economic reality is a problem which all companies are attempting to solve. There is no magic wand that can change outcomes, but practical thinking can limit risk, and assist in spotting the opportunities, while, your competitors focus on consolidating and mitigating risk.