In summary, three key principles have guided me through this crisis:
- You don’t have a choice.
- Focus on what works, not just on what should be done.
- Be critical on marketing and focus on sales.
”…self-pity is not an option. Instead, I find motivation in the prospect of proudly announcing that we are growing amidst the crisis (d**k swinging).”
Stepping into a new leadership role in February 2024, I found myself guiding our family business through the most severe economic crisis the Finnish construction industry has faced since the 1940s. With over 80 businesses declaring bankruptcy each month, the challenges have been immense. However, my experience as a board member in organizations that foster long-term successful entrepreneurship and a keen passion for effective leadership has provided invaluable insights. Here are five essential focus points that have been crucial in navigating these turbulent times and inspiring our team towards a brighter future.
1. Resilience, Decisiveness, and Grit
Growing up with entrepreneurial parents instilled in me the values of resilience, decisiveness, and grit. These traits have been invaluable. Since childhood, I’ve learned that when faced with a choice, one must decide firmly and commit wholeheartedly to that decision. This unwavering commitment is essential in times of crisis.
2. Focus on Sales
Sales is the lifeblood of any business, especially during an economic downturn. Let me share a story about what happened to me:
I was walking down the street when I saw someone struggling to carry a sofa. Offering my help, I discovered he was moving into a home needing repairs. This encounter led to a closed deal without any marketing efforts. The key takeaway? Direct interaction and immediate value can outweigh traditional marketing. Get out, meet your customers, and be bold. You have everything to lose if you don’t, but all to gain if you do.
3. Motivating the Team
Team motivation is critical. First, ensure you have a cohesive team. This might mean making tough decisions about team composition. Then, tackle challenges head-on and lead by example. Showing your team that you are willing to take the hit can inspire them to do the same.
4. Cut the Expenses
In declining sales, start cutting expenses strategically. Begin with administrative work and automate. Sales should be the last area to reduce, as it is crucial for generating revenue and keeping the business afloat.
One thing that I learned was that engage only in activities that are important and urgent to keep your business alive, other matters can be dealt with later if they persist to be relevant.
5. Don’t Give Up
The most important lesson is perseverance. Don’t expect applause from the audience. Your closest supporters will be there for you, but ultimately, resilience comes from within. Embrace the mentality that you DON’T have a choice but to move forward. This mindset fosters resilience and propels you through tough times.
Shoutout to my fiance and best friend that were the MVPs for this tough time as they were the ones to encourage, listen and support. I am lucky one to have them.
Additionally, self-pity is not an option. Instead, I find motivation in the prospect of proudly announcing that we are growing amidst the crisis (d**k swinging). Like I will do now. Officially +12 % QoQ growth.
Yours,
Katariina