Managing through uncertain times calls for strength and leadership.
Have you ever heard the term “the fog of war”?
It's referred to by veterans and describes how difficult decision making is on the battlefield. Concerns around your capability, your enemy & the imperfection of information you have at hand creates much uncertainty.
It’s not unlike the situation we are in now.
At times like this, it’s comforting to see how others have navigated their way through.
Let’s look at the example of a brave business owner – Joshua Dick.
In the US during 2003, the state of the economy was being referred to as the “jobless recovery”. Concerns about the war in Iraq were looming. The Dow Jones Industrial Average fell below 8,000 in February. Mortgage rates plunged to 30-year lows, & homeowners rushed to refinance. George Bush cut taxes hoping consumers would start spending. No doubt those were uncertain times in business.
Against this bleak backdrop Joshua Dick took over his father’s company.
Urnex was generating less than $1M in annual sales across seven product lines.
Joshua made the difficult decision to retrench six of the seven product lines and focus his limited resources on the one product that he thought had the potential to scale: cleaning supplies for commercial coffee makers.
In other words, a niche of a niche.
He poured all of his limited resources into becoming the best in the world at one thing.
In doing so, he ultimately grew Urnex to more than $5 million of EBITDA, which is when he decided to sell for a double-digit multiple.
We often feel paralysed in the throes of a crisis, and we know there is so much at stake. Manoeuvring through this and steering the ship forward takes everything you have. This is why it’s worth sharing the stories of owners who took bold & decisive action at a time of deep economic uncertainty.
If you need some guidance to manage your business through the current economic uncertainty, a great place to start is the CPA Guide below.
Create your COVID-19 Contingency Plan with this detailed planner
CEO and Founder, Exit Advisory Group
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