Running a business is not a sprint; it’s a marathon. Endurance, then, is one of the better qualities a business can invest in cultivating – something demonstrated remarkably well by the difficult economic in which UK businesses are presently operating. Though recession conditions are appearing to be a thing of the past, the economy remains a gruelling one in which to survive.
For many businesses, survival is the aim, against rising operating costs and still-low consumer expenditure. Aggressive growth tactics are likely to result in over-extension and even administration, as businesses stretch themselves thin. Resilience trumps short-term profits, and can be achieved in a number of simple ways.
Diversifying Revenue Streams
The first way to enhance your business’ longer-term resilience is by addressing your main sources of income. Basing annual profits on a single source of income is akin to placing all eggs in one basket; any number of individual factors could decimate this income source, leaving you exposed. Diversifying your income streams means marketing yourself to new demographics, finding alternative means of applying your product and services to new industries or simply engaging with a new avenue of e-commerce.
Investing in Employee Development
While looking outward is essential to building a resilient business, it is by no means the only direction in which you should be looking. Internal adjustments are just as important, if not more so, to the sustainability of your business and its model. A key example of this lies in your staff.
A good staff cohort is a well-trained one, and investment in training can go a long way to creating a satisfied and loyal team too. Small business loans are not just for expansion or infrastructure, and can be used to great effect in upskilling your staff – creating a better team, and a more resilient business.
Optimising Supply Chain Management
Inefficiency is often the root cause for business failure, and an often-overlooked aspect of business stability outside of survival mode. The sooner you address inefficiencies, the better – starting with your supply chain. Inefficient supply chain management can induce additional costs, as well as insecurity regarding the flow of products or services. Ensure you aren’t relying on any one supplier or partner for essential materials or support.
Embracing Sustainable Practices
The future is green. Climate change is an ever-present issue, and one which will only become more relevant to businesses as each year passes – and as global temperatures continue to rise. Ecologically guided regulations are a matter of ‘when’ as opposed to ‘if’, and positioning yourself as a greener business ahead of time can reduce costs related to compliance – improving your chances of longevity.