Strategies For Growth In 2023
How can business leaders determine whether a particular growth strategy is applicable to a business’s specific situation? First and foremost, timing is everything. It might feel like it’s always the right moment to take your company to the next level, but knowing when to expand is just as critical as knowing where to start.
During times of financial uncertainty, many companies focus on their core competencies and forget that there are still opportunities for development. The quality of businesses today is strong, and organizations of all sizes have healthy balance sheets despite a looming recession. To continue this upward trend, let’s take a look at some key strategies for growth in 2023.
Never Waste A Recession
You might look at that header and scratch your head, but here’s the thing: Recessions are not all negative. Companies make layoffs, and consumers reduce spending—these are always hard pills to swallow. But we also need to remember that recessions are temporary. Those with the foresight to look beyond the current moment can take calculated risks and seize growth opportunities to make strategic investments and gain market share.
As you’re looking to the future and wondering what you might do to not only survive but thrive during challenging times, here are some things to consider:
• How are your competitors holding out? Seek opportunities with competitors that are ripe for acquisition.
• Historically, how has your industry performed in recessionary environments? Do macro trends develop, such as consolidation? Learn from past experiences (both yours and those of others!) and forecast how that relates relative to your situation and where you want to be in the future.
Think Like A Startup
Business leaders must also understand their market and industry micro-trends, including a history of competitors’ experiences, growth, retraction and capitalization, to name a few. No matter how long your business has been established or how much revenue it’s generating, it can be hugely beneficial to continue—or adopt—a startup mindset. Take a page out of the go-to-market playbook and operate your growth initiatives like you would if you were about to launch a new company, product or service.
Develop explicit KPIs, targets and definitions of success. Does your strategy require a capitalization plan to execute? What about third-party or strategic capital? Perhaps the business could benefit from a partner, or maybe it’s attached to a succession plan. There are many factors to consider, including room for geographic expansion of your existing products and services catalog.
Focus On Customer Experience (CX)
A wow-worthy customer experience (CX) is one of a company’s most valuable assets. Your CX strategy should be tied to every part of the business. Provide frictionless buying journeys for Gen-X and Millennial decision-makers. Not only does this demographic control a significant portion of buying for their companies, but they also have the power to influence their more junior peers. According to findings from Zapier, over 60% of Millennials now have direct reports.
Need more proof to provide a frictionless experience? A recent survey showed that the majority of buyers (81%) want to find information about products and services on their own. But don’t completely neglect the human touch; some customers still want the authentic experience of speaking directly with a person—especially when things go haywire.
Be Strategic About Hiring
If you need to reduce your workforce, are you being smart about it? Don’t ditch top performers just to try and save top dollar; instead, focus on those not aligned with a high-performing culture. It’s simply a reality that many businesses over-hired during the pandemic and lost sight of their performance cultures.
The U.S. Bureau of Labor Statistics reports a quit rate of 2.6% in October 2022 when 4 million people left their jobs. With so many workers quitting their jobs in the last year, hiring has been so challenging that many organizations have simply held on to people they don’t need.
Another critical thing to consider is competitive hires who might enhance or accelerate your growth objectives. Or, if you need to leverage experts in several key areas simultaneously, consider working with independent experts who can help with industry-specific knowledge and/or apply lessons learned from other industries to your situation.
Growth strategies in 2023 should be heavily influenced by the company’s goals and planned in phases (the next year, three years and five years). Align your growth activities with where you want your company to be during each of these future phases, and then work backward.