After a boom in the tech sector — several years of growth and market conditions that allowed companies to flourish — the high interest and inflation rates have caused it to slow down. In a post-pandemic world, these reasons, along with changing consumer habits of a post-pandemic world, have affected businesses across the world. Inflation and interest rates have lowered valuations and investors are more reserved. Multiple companies — both big and small — have had layoffs across Canada in early 2024, especially in the tech industry.
The environment we’re in poses some challenges, but there are some things you can do to set up your company for stability in the long term.
- Prepare for financial setbacks
Many people think insurance coverage would be one the first things that could go while making cutbacks. A lot of companies have only the basic coverage to fulfill regulatory requirements, and to fulfill investor and client needs. But what happens when you do get sued? You’ll have to spend time, resources, and much more money than you anticipated. The financial setbacks could mean the end of your business. Think of it like an investment in protecting your company in the event that something does go wrong. It’ll allow you to figure out next steps during unforeseen challenges, and offers a safety net so you don’t completely falter during slower years.
- Take a metric-driven approach
It’s true that numbers never lie. As a business leader, you need to ensure that performance can be measured and progress can be tracked. This will enable you to make informed decisions, enhance productivity, and cut what needs to be cut. It helps you see what works and what doesn’t. Defining clear number goals and metrics will help employees to take accountability and perform better. It gives them a sense of responsibility, and helps to encourage improvement and resilience.
- Create networks within your company
On a more technical note, companies use many programming tools and systems. These technologies are used to share data among teams and to resolve issues quickly. To ensure a powerful, effective network, businesses should operate on a horizontally integrated network. You can do this by connecting staggered or individual systems under a single platform, to enable better flow of information. You can also encourage employees to use collaborative systems and communication to create a network that will enable the company to thrive.
Weaving together the collaboration and interactions among different departments and channels will only better the experience for your employees as well as your customers.
- Be transparent and manage expectations
Investors put a lot of money into helping companies grow. They had to have some trust in you to begin with, and it’s essential to maintain that trust. In this economy, it’s easy to sweep things under the rug or not say anything, to keep investors in the dark about the company’s financial health, in the hopes of not losing funding. However, they might just become more nervous if you’re not communicating anything to them. If your revenues are lower than you expected, make sure you’re transparent and honest with the people that are backing you financially. Keep them in the loop and make sure they are informed about any changes in business plans.
- Build a positive company culture
Company culture can make or break a company. Fostering a sense of trust and support is essential to having a strong company, and motivation among employees. To create a positive work environment, company leaders need to set a clear vision for the company that aligns with the values and goals of the company. Strong communication and opportunities for feedback and suggestions — and actually taking those suggestions to improve the workplace — go a long way in building a successful business. Encouraging teamwork among different departments and providing a sense of community and support among employees will only make your company stronger, and give people the motivation to work toward a shared common goal.
- Run productive meetings
This might seem very obvious, but something as simple as having a productive meeting is essential to having a resilient organization. We all know communication is key in a relationship, but it’s also the case for organizations and larger corporations. Having productive meetings is essential in ensuring that everyone is on the same page, and aware of situations and changes in the company. Productive meetings have an objective, a realistic attainable goal. To reach this goal, you’ll make an agenda so you don’t stray from the topic at hand. It’s also important to hold meetings at every tier in the company, so everyone is working toward the same goal, making a more resilient team and company.
Helen Jacob | Contributing Writer
