Using uncertainty as a platform for midmarket growth
It’s more or less an inarguable fact of human nature that we, as a species, do not savor change. Unpredictable, seismic change even less so. Why should we? It can bring Black Mondays, confusion and uncertainty, having to find a new road that circumvents the old. Unwelcome change can lead to the complete and utter dismantling of all that we found comfortable and have worked hard to attain.
The bottomless bottom-line? Change is unavoidable. The shiny upside? Disruption often makes way for opportunity. In fact, disruption can liberate resources allowing smaller entitles to at last have their day in the sun. That’s why, as middle market business owners, we must fortify our companies as best we can in anticipation of the the Next Great Event. As author Nassim Taleb testifies in his book “The Black Swan,” we all can and must be prepared for the unexpected. Strengthening our businesses enables us to prevail over turbulence so that we may emerge as stronger, better versions of ourselves.
We well know that banks and lenders share much of the same risks as middle market businesses. We all have skin in the game and knuckles that bleed. Survival, as Taleb postulates, depends upon your company having enough resilience to weather negative stressors while, simultaneously, having enough steam and reserve left over to capitalize on the uncertainty.
When (not if) that black swan event occurs, you need to act fast. You must rapidly assess damage, address shifting market conditions, modify your business model, revaluate your supply chain, manage your staff all the while continuing to serve the ongoing needs of your customers.
Simply put, you cannot row the boat forward, bail water and plug the hole all at the same time. That’s why the basis of any good business survival strategy means having enough capital on hand to stabilize your defenses and make quick decisions.
Preparation for the unexpected is essential. Invest in your company during good economic times, streamline and digitize internal processes, look out for potential vulnerabilities and seek funding in order to have enough cash on hand to manage anything the future may throw your way. These four simple strategies may keep you and your business on the right track– no matter the color of the swan you may face.