Investments in Times of Recession

In recent months, these types of headlines have been common: “The risk of a global recession in 2023 increases amid simultaneous interest rate hikes.” So have comments, such as: “The world could be gradually moving toward a global recession in 2023 and a series of financial crises in emerging markets and developing economies.”

From the outset, it is important to know that the economy is somehow speculative, and fluctuations in the markets are based on possible events. This obviously fills us with uncertainty, since seeing the headlines based on the views of economic specialists generates a great level of uncertainty for business people, and especially for new entrepreneurs.

The challenge for leaders and business people becomes greater amid a depressing loop of lack of inputs, lack of personnel, little economic flow, greater government restrictions, increasing insecurity, political changes, and historical increases in inflation, among others.

So, when we talk about investing, obviously it is an issue that is not feasible in times of crisis. On the contrary, we think about generating the least possible change to avoid destabilization in our businesses. But in doing so, we are forgetting that in moments of crisis, the best opportunities are generated. We should focus on that. The challenges that we have already mentioned are part of those that most of us are experiencing in any sector, and if we can overcome them it will be a differentiating factor for our company. So, the question is: What should we invest in during  times of recession?

Before answering this question, it is important to know where your business stands, and to do a self-examination on the main areas of opportunity. We must consider a 360 analysis to take into account all the areas and edges of our company. As absurd as it may sometimes seem, some executives and leaders in companies do not know the core business of the company for which they work but they are the same ones who are asked to manage change models or business investments.

Whatever the answer to your self-examination, remember that time is the most important resource, so when you have the points to work on, you must attack them as quickly as possible. Do not get involved in an exhaustive methodology that takes months to implement, look for the quick hits. And with that, focus on what you should invest in.

The first example of investment in times of crisis and recession is talent development. It is unlikely you will find the specialist hybrid you are looking for abroad who best understands the business, so you must develop the skills of your staff to succeed in the unstable business environment that exists today, continually responding to technological advancements and a constantly evolving social and economic environment so that employees are efficient, productive and adaptable.

On many occasions, small entrepreneurs relegate investing in employee training to the background, especially when their companies work with small budgets. It is often unthinkable to invest in training. It is important to define exactly what skills you want your employees to develop and to keep in mind what benefits for your business are you expecting.

A small investment in training and time today can save time and money in the future. An employee who learns to manage projects, to manage time more effectively and to deal with problems, will work more efficiently, which will increase the productivity of your business.

Investing in training will also increase the talent level of your company. Training will help employees reach their potential. Having skilled and competent employees will give you more confidence to carry out promotions, you will reduce the need to hire external people and you will avoid problems related to the lack of qualified labor and waste in the processes, which, of course, turns into money.

Investing in improving your company's work environment tends to make employees feel more engaged with the business and more motivated. Taking a break from daily activities is also a way to recharge your batteries.

In the first instance, before investing in technology and infrastructure, we must invest in people.

Of course, the next recommended investment during moments of crisis is technology, systematization and the standardization of processes. These are systems that allow your business to function optimally, even if you are not physically present all the time. You must learn to delegate and invest in technology that allows you to optimize processes. It is also advisable to invest in a Quality Management System that helps you standardize processes. The key is to systematize and standardize the operating processes of your business.

It is important to keep in mind that the implementation of the technology does not have to be expensive. Startups often balk at the idea of ​​taking money out of the budget to develop software or other technology.

Any investment you decide to make should benefit the following aspects: speed, efficiency, innovation, competition, expansion and expense.

Do not forget what your core business is, but  pour yourself into creating strategic alliances that allow your company to reduce costs, eliminate waste, expand your reach in the market and reach a new audience. In short, that helps the business to boost its growth.

Strategic allies are a key element in the success of a company. For this reason, it is important to identify which companies can help you to achieve your business objectives successfully and to grow exponentially.

If you are looking for a strategic ally in logistics services, Dicka Logistics is undoubtedly the best option.