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How to Survive and Thrive During an Economic Downturn

New research from Innovation Leader shows that 28 percent of Fortune 1000 companies are currently less focused on new growth initiatives than they were a few months ago before the covid-19 crisis began. 

It also shows that 46 percent are companies putting a greater emphasis on core business activities and simply trying to stay afloat.

While it does make sense to cut costs and ensure effective operations in uncertain times, a risk also exists: Companies that solely focus on surviving in the short term can soon be left behind when the market returns to an upturn. 

What this article proposes are a few ways to keep growing during an economic downturn that minimizes costs, time, and resources, while also maximizing results. 

Even if there isn’t something here that directly relates to your business, I hope it at least gets you thinking about what you can do to not only survive but also thrive during these uncertain times. Here we go:  

Conduct Nontraditional and Lean Research

In a downturn, many companies stop looking at what the market needs, and instead, focus on optimizing their existing products or services.

Although, market research doesn’t have to be costly. Instead, you can use nontraditional means such as testing your ideas on friends, family, social networks, or anyone else who will listen and provide feedback.

It’s important to keep your creative juices flowing and stay ahead of the market, even in a cost-conscious environment.

Prioritize Customer Needs

Listening to customers is the first step in determining what will keep them loyal and help you get new ones in the door. Especially during an economic downturn, as their priorities and mindsets are also changing with the shifting circumstances.

Go Bargain Hunting

If you have cash reserves in a downturn, many good deals can be found in the form of technology licensing, materials, equipment and acquisitions.

Facebook, for example, acquired Instagram following the 2008 recession before Google or Microsoft could get their hands on it.