Small Businesses Need A Future-focused Mindset To Grow

Small businesses have long since adopted the mindset of hustling every single day to make a name for themselves, establish a strong following, and ride the wave of opportunity after opportunity. And despite the inherently competitive nature of the business world for those with smaller operations, this has proven to be the most effective approach to attaining superior results and producing exceptional sales performance.

However, given the level of uncertainty that’s currently governing market conditions, the mantra of aggressive opportunity-seeking doesn’t bode as well in today’s time, especially since one misstep can cost you your entire business or put you on the back-end for months. And so, today, we want to remind everyone how important a shift of perspective and the need for a future-focused mindset have become and why these are essential for sustainable growth.

Aggressive Strategies Backfire In Times Of Uncertainty

No one denies that aggressive strategies aren’t deemed as double-edged swords, but during times of uncertainty, the risk of this strategy backfiring on you increases significantly to the point of being unwise. That’s because risk-management plans often go awry when market conditions throw away every technical indicator and solely follow fundamentals, and because there’s no telling what news or events may occur, you’re putting your business’s economic resources under the heel of chance.

  • Business Decisions At The Mercy Of Market Volatility

Saying that market volatility is scary doesn’t begin to explain just how impactful a sudden shift can be for small businesses, and if you take the risk of butting heads through aggressive business decisions, one wrong move might turn impossible to recover from. No level of planning will safeguard you from economic activity hitting an all-time low and inflation rates hovering at scary numbers.

  • Disaster Strikes When You Least Expect It

If we look back on 2020, nobody expected the sheer magnitude and reach that Covid-19 would have on the world, and if you told anyone then that we’d experience lockdowns and a recession, no one would believe you. This goes to show that disaster strikes when we least expect it, and with reports of the Delta variant spreading, now’s not the time to be spreading ourselves thin and hedging bets that would upend any profit for 2021.

Think Long-Term And Plan Ahead Instead

As a result, it’s much wiser to think long-term and to plan ahead for worst-case scenarios because the opportunity costs of taking risky decisions don’t guarantee worthwhile tradeoffs right now. The time for opportunity-seeking will come eventually, and while we can’t time the market perfectly as to when that will happen, it’s best to take the safer route given our current circumstances.

  • Determine Your Risk Tolerance

While we did mention avoiding risks, we don’t mean to avoid them entirely and raise your risk aversion to 100%. We recommend that you determine what a tolerable amount of risk is like for your current financial position and strictly limit any significant business decisions to that degree. You want to operate with respect to uncertainty, but you shouldn’t forego every opportunity.

  • Don’t Count Out The Unthinkable

The Covid-19 global pandemic taught us that anything could happen under the right circumstances, and we urge every business owner not to count out the unthinkable from their protection plans. While news of easing restrictions has paved the way for economic confidence, one dangerous mutation could cause stricter measures and civil unrest. So, equip your business with the means to handle turbulence and your employees the competency of responding to active shooters and other disaster preparedness interventions.

  • Conservatism In Practice

Last but not least, don’t forget to put conservatism in practice in all relevant sectors of your firm. It may seem like an obvious solution to be more prudent during such uncertain times, but you’ll be surprised at what people can be capable of if livelihood and business are at stake. So, don’t let it get past the point of no return and play to your strengths.

Disclaimer: We’re Not Saying Aggressive Strategies Don’t Work

Likewise, while we have managed to paint aggressive strategies in a bad light, we’re not saying that they don’t work and won’t offer any results. In fact, if we take cryptocurrency as an example and Ethereum’s bullish price predictions, those that took the risk and made aggressive moves are now enjoying the profits of the bullish rally. So, it’s not that aggressive strategies are impossible to profit from, but that the risk factor has increased considerably.

Don’t Chase After Short-Term Profits

Overall, it’s never smart to chase after short-term profits, and even more so during times of uncertainty like we are experiencing today. Therefore, don’t give in to the temptations of risks and hype stories because there’s no assurance the same will happen to you.

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