The views expressed by the business participants are their own.
In times of economic uncertainty, businesses must make critical decisions about growth, expansion and scale with clarity. Will the new product or investment strategy be met with enthusiasm by investors and customers or drag the company into a financial crisis from which it will not be able to recover easily?
The evidence is clear (and available from many agencies). The global economy is down. UN Trade & Development shares that global economic growth will slow to just 2.6% in 2024. That remains just above the threshold that is commonly accepted as a recession.
Deloitte explains that, in the US, high interest rates, the weakness of the global economy and the severe recession are affecting growth in all organizations. The US economy is expected to post real GDP growth of 2.4% in 2024, but slow to 1.1% in 2025. The US Bureau of Labor Statistics, however, believes that the economy will continue to grow at a rate of about 1.9% each year from 2022 to 2032.
Other different factors of the situation affect the overall growth of companies, such as domestic or international political instability or uncertainty, the rapid development of AI and automation technologies that are changing not only industries but also the labor market, ongoing conflicts with the Russian-Ukraine war and other global factors. instability threatens everything from commodity prices to international relations, and ultimately environmental impacts such as damage to agriculture and infrastructure to EV demand, which affects the economy.
In a situation like this, how does a business maintain financial and quality projects? Most organizations cannot and should not postpone scaling to wait for better economic times.
As the CEO of a No. 8 publicly traded company, achieving 7-figure growth each year, I’ll show you exactly what we’re doing to keep scaling. These are important steps needed to ensure that your company is sustainable and growing despite external circumstances.
Related: 5 Ways to Scale and Grow Your Business During a Recession
1. Segment your customer base and markets
It is very important to diversify your portfolio across multiple industries to reduce any reliance on a particular market. This reduces the risk that a certain downturn occurs, ensuring that there is still continued growth in other areas. At tec5USA, for example, we are constantly working to learn and grow in a variety of ways.
This is the time to expand into new country markets. This, in turn, helps spread risk and enables companies to take chances where growth opportunities lie.
2. Invest in innovation and R&D
For product development, focus on research and development to ensure that existing products continue to meet consumer needs and expectations, helping to maintain market share. It is also time to consider new products or solutions for emerging industry needs.
Customization can also be one of the most exciting opportunities right now. Tailored solutions that meet client needs help improve value and ensure your client relationship is valued.
3. Improve customer relations and service
In uncertain times, companies must build customer relationships by providing exceptional service and technical support. Your goal is not to secure one good transaction but to build long-lasting relationships with customers.
This is also the time to invest in training and education programs for clients to ensure they continue to see the value of working with you.
4. Focus on quality and consistency
Compliance is a financial nightmare where oversight leads to financial losses. Instead, make sure your products meet industry-specific regulatory standards and certifications, especially in highly regulated industries like pharma and biotech.
Quality control standards should also be as high as possible. In our case, strict quality control procedures ensure the reliability and accuracy of the spectroscopy equipment. However, make sure you do your due diligence to ensure you don’t cut corners. Stay sharp and detailed in maintaining the quality of your equipment, customer service and service delivery so that the trust from your customers remains high.
5. Strategic partnerships and alliances
Building partnerships supports growth strategies in any industry. Create strategic partnerships with other technology providers, research institutions and industry leaders. Work to integrate new solutions and increase market access, reducing some of the financial risks while improving product development opportunities and solutions.
It is also important to invest in industry associations and standard setting organizations. This enables your company to stay ahead of regulatory changes and influence industry standards that align with your business goals. tec5USA works consistently to play a role in the leadership and management of our industry to remain highly competitive. For example, we have partnered with UGA (University of Georgia) to detect bacteria through SERS, Rutgers University and RCPE Graz, Austria to get support for their pharmacy projects. Consider which organizations or networks you can partner with to distribute your products or services, and use your time to maximize your long-term impact.
Related: How Building a Strategic Alliance Can Help Your Business Succeed in Tough Times
6. Agility and flexibility
Another core approach we use at tec5USA is a flexible business model. I will be the first to note that it is not easy for all organizations. However, when you can be flexible with your business model, such as offering leasing options, subscription services or performance-based contracts, you attract more business opportunities.
Also, apply guidelines for flexibility and agility in supply chain management. It is important to ensure that your supply chain can withstand not only the financial perspective but also the importance of the country’s conflicts. Improve operational efficiency, and monitor inventory control.
7. Marketing and branding
I strive to continuously provide industry-specific and highly insightful content to support my company’s reputation as an industry leader. One way to do that is through thought leadership. Position your company as a thought leader through white papers, webinars and participation in industry conferences.
We also use the most modern advertising techniques. Digital marketing strategies, including search engine optimization (SEO), content marketing and social media engagement, enable us to reach a wider audience.
8. Sustainability and corporate responsibility
Stability is an amazing feature in most industries, and ours is no different. Work to implement and promote sustainable practices within your company to attract environmentally conscious customers and comply with increasing regulatory pressures.
Also, note that corporate social responsibility is not selective. It is a core part of the work we do at tec5USA because it is important to the world and to our customers. Consider obtaining ISO 14001:2015 certification, which is a standard that sets the requirements for an Environmental Management System (EMS). As a certified company, tec5USA supports philanthropic activities as it happened when we supported Climeworks to measure its technology with the goal of removing 100 kg of CO2 from the air per month. Consider how your business can support your customers or partner with organizations that develop sustainable practices to increase trust in your company.
9. Financial management
Financial management should be at the core of any publicly traded company in uncertain times. Optimize operations to reduce costs without compromising quality. This may include creating more efficient processes, using energy-efficient production methods and improving energy efficiency.
In my company, we are always aware of market conditions and their economic impact. Companies that make an effort to monitor and build during this time are likely to come out strong. As with any personal budget, keep strict bookkeeping and understand where you need to allocate your money for maximum return.
Related: 4 Financial Tips to Make It Through Times of Economic Uncertainty
By diversifying your customer base, investing in innovation and R&D, growing customer relationships and focusing on quality and compliance, companies can thrive amid external pressures. Building strategic partnerships, maintaining flexibility and focusing on effective financial management continue to strengthen a company’s ability to scale, even in uncertain times. Ultimately, businesses that use these strategies will set themselves up for long-term success.
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