Too much risk to grow?
Uncertainty surrounds us all. Threats to business include private and public reactions to the pandemic and the counter actions. Government stimulus, unusual market demand and private supplier decisions have created supply chain fluctuations, inflation and shortages on skilled labourers. Even the new future of cryptocurrency suffered a “correction” or set back. These threats have businesses exercising caution.
Now is not the time.
Drive has been collecting responses from companies regarding their experiences of the COVID-19 pandemic. Overall the majority of companies indicated that demand for their product has grown throughout the pandemic. Despite this growth in demand, many companies are looking to increase stability rather than risk growth.
Stress Overload.
The pandemic created a pattern of stress and anxiety from unknown, uncontrollable and unpredictable actions of government and the general public.
An article from the World Health Organization in 2020 captures much of what we faced in their bleak outlook for the majority of the world’s population. Similar reports from media, local events, unexpected shortages and ever-changing government mandates served to tire even the most resilient minds.
Alexander Ganis’ article from 2020 goes into great detail on how negative stress can sneakily effect our emotions, decisions and inevitably our behaviour. The pandemic created stress overload, and the end of the pandemic was supposed to end it.
Different Than Expected.
To everyone over 5 years of age the pandemic world was abnormal. We yearned for things to go back to “normal”. Unfortunately, inflation and geo-political threats replaced the threats of the pandemic. Stress was not reduced.
It is no wonder then, that businesses that previously prized growth are compelled to stability. We have heard from several businesses that they want to reduce stress, inferring that growth is the opposite. Other companies state that growth is unattainable due to a shortage of skilled workers. This begs the question, is now the right time to try to grow?
Does growth = stress?
Let’s pick this equation apart starting with defining stress. Stress is a state of mental, physical or emotional tension resulting from external or internal forces. (Oxford 2022 combined and abridged)
We would argue that this sounds rational and logical. Of course growth will create tension, on business systems, staff, managers and probably even the bank account. Therefore if you grow, you and your organization will quite likely experience stress.
Is it settled?
Although growth will likely create stress, the assumption that staying the same size would have an opposite effect, bothered our intuition. This sounds good, but finding equilibrium in business is often more difficult than growth. Business is subject to economic ebbs and flows.
“Economic equilibrium is a theoretical construct only. The market never actually reaches equilibrium..” Investopedia 2022
It sounds as though staying put will create tension against the marketplace and thus stress. Stress, without the excitement and momentum created in growth. We would argue it would also expose the company to increased levels of “bad” stress and the risk of regression.
So we should grow?
That depends. Your ability to successfully grow is determined by the following;
Your level of preparation.
Is the market ready for you? Have you assessed the market and determined the demand is there?
How will you spread the word?
Can your business absorb the growth from an operations standpoint?
What is the best possible outcome?
The worst?
Are you financially prepared for growth?
What is the cost to grow? Where is the funding coming from?
What if it takes 6 months longer than expected?
Challenges
Assess where you and your team is at on the growth vs. regression sentiment. Is everyone on the same page? If not, is internal stress being created?
Review your business plan with your senior leaders. Is it current and executable? Is it inspiring? Do you have one or is it there “for the bank”? Does it require management reflect on labour shortages and find a “new way”?
Have a post pandemic business retreat with your partner or key leaders. Discuss the threats and create an outlook for the far future and bring it to the present. What are the most important things to be done make the far future a reality?
We would love to hear your story! Take part in our Post-Pandemic Survey.
