You need to score to win at anything in life, and to score, you need to play offense!
I’m unsure what’s happened to the mindset of the average business leader these days. I’m well aware that they’re bombarded with a lot of information, most of it negative, about the state of the economy, our political process, global instability, and the overall market for talent, among other things. However, they never would have started their business in the first place if they had gotten caught up in all the obstacles involved in being successful in business. When you launch your own company, you are going against the odds anyway. All you can do is give it your best shot and believe in your individual capacity to navigate whatever challenges come your way. First and foremost, entrepreneurs are optimists.
I wish it weren’t true, but it seems there’s a lot of money to be made by scaring people and giving them something to fear. I guess we all pay more attention when we hear “the sky is falling” than when we hear that things are going well. The most interesting thing for me this past year or so in business is how frequently so-called experts contradict themselves and change their opinions based on the whims of the marketplace or the vagaries of large company leadership behavior. I am always wondering, “What’s their angle?” I’ve literally heard people say that we’re on the cusp of the worst recession ever at one point and then, not much later, talk about a soft landing for the economy. I’ve learned to take what I hear with a “grain of salt” and carefully check the source that’s saying it. Often, I choose to ignore the noise altogether. I think it’s better to focus on what you can control rather than what you can’t, which is what most media tend to focus on.
The reality is that high-performing organizations often grow more aggressively during downturns. While everyone else is treading water, they’ve planned for this moment and have the management prowess, financial liquidity, and risk appetite to seize opportunities. They understand that talent may be more readily accessible when everyone else is freezing hiring or scaling back. Vendors are often more willing to negotiate better terms when they are worried about their survival. Banks still need to lend money to make money and are looking to consolidate their risk into better-run companies and more thoughtful business strategies. Consumers rarely scale back completely and value quality and stability more when their purchasing power is limited. Furthermore, colleagues who have not planned effectively or are operating in a state of scarcity may decide to leave and seek alternative opportunities. 2023 will be filled with numerous business opportunities if you’re looking for them.
I love it when President Biden says that “it’s never been a good bet to bet against America.” I entirely agree. Consider the state of our economy and business environment in comparison to others. There is something special about this country when it comes to embracing a challenge and turning difficulty into an opportunity. We should never forget this. Now is not the time to be scared as a business owner. Now is not the time to be indecisive and risk-averse. If you believe you are running a strong company with a solid culture and a sound financial position, then capitalize on the current business environment and move forward. Strive to gain market share and strengthen your competitive position.
If you don’t believe me, then listen to Warren Buffett: “The best chance to deploy capital is when things are going down,” and “…Be fearful when everyone else is greedy, be greedy when everyone else is fearful.” His most prosperous years have coincided with times when others sought refuge.
If you don’t have the stomach for the “ups and downs” of business cycles and have limited leadership capacity for dealing with uncertainty and adversity, then perhaps it’s time to consider downsizing or reevaluating your approach. It’s relatively easy to do well in a “Bull Market” economy (although some people manage to screw this up). To some degree, “a rising tide does lift all boats.” You will discover what you are made of as a leader and business in a “bear market” environment, when most competitors in your marketplace are struggling and their business weaknesses are exposed.
Life always tests how badly we want something and the effort we are willing to put forth to make it happen. This is why most novels are full of “rags to riches” stories, and history books provide countless examples of leaders who overcame tremendous obstacles to achieve their objectives. Believe in yourself and your organization’s ability to win right now. Play offense!