August 2, 2021 7 minutes readEntrepreneur contributors do not necessarily agree with the opinions expressed.It is important to take decisive actions and measures in turbulent times. Managers and business owners need to be able to make critical decisions when faced with dramatic changes in the economic and sociopolitical environment. It is impossible to predict when or how critical problems will arise.Even the largest corporations can't manipulate markets in their favor. They must be able to react quickly to critical moments that could make or break their business. To achieve the best results, these decisions should be well thought out.Managers and owners must make the most of difficult times. These are opportunities to show smart decision-making as well as potential failures. It is essential to be able to respond to these situations to ensure your success.1. RestructuringA company's organizational, financial and operational structure is restructured. This involves drastic changes to the business's operations, people, debts, revenue generators, policies, and employees. This is done in order to increase profitability, take advantage of new opportunities, reduce losses, or eliminate unprofitable parts of the business.Sometimes restructuring is necessary in order to refocus or downsize operations. If a company is involved with a merger, acquisition, or both, restructuring will be necessary.One case study shows that e-commerce marketing company Optimum7 reached a point where it had three options. It could either sack its staff or restructure the company. The company chose the second option.This bold move required the company's execution to be reconstructed. The changes included the hiring of project managers for greater efficiency, creating new training structures, and creating a custom project management software. A completely new sales funnel was also created to promote new services.This decision was a success. The company remained strong and developed a better-informed, more productive team. The company was more profitable, scalable, and overall much better than it was before.Related: How to Restructure Your Company's Management into 21st Century Leadership2. 2.Turbulent times don't always mean doom and gloom. Sometimes they can be a sign of opportunities. The stock market boom that occurred during the pandemic shows that real economic turmoil doesn't mean you can't make money. Investors who are savvy can identify opportunities before they appear or even before they occur.When the economy is weak, companies with weak core businesses or weak bottom lines may look to other investments such as the stock market.It is difficult to invest when the economy is in decline. However, there are ways that businesses can make investments more profitable. Dan Ho, cofounder of STAR System (the technology behind Globalytics Technology Research Limited's proprietary software), explained that artificial intelligence, data analysis, and business intelligence combined can accurately predict future outcomes in the areas of forex, commodities, and digital assets. Investors can get useful, real-time advice on trading by analyzing large amounts of data and determining the most likely outcomes.Businesses can use the right tools to explore investment opportunities in order to replace the revenue lost from core business activities.Although impulse buying and selling is not something brands should do, AI-powered data analytics and business intelligence can be used to help entrepreneurs make the most of market movements in volatile or uncertain times.3. How to deal with people and relationshipsPeople can have problems when they are in a difficult financial position. To keep your business afloat, are you willing to cut back on pay or layoff employees? Are you willing to give up long-term suppliers or business partners in exchange for cheaper alternatives? It is inevitable to make changes in order to maintain good relationships.Business managers must consider the views of customers, investors, and board members when making decisions. David Zhao, CEO of NXT Group recently opened The X Pot, a fine-dining restaurant at the Venetian. Zhao sold his home and joined his investors to build a interactive experience worth $10 million that features robot servers and 3D-animated entertainment. Fresh food is flown in daily.Zhao faced the dilemma of whether to pay his employees while his restaurant was closed or to please investors. Zhao answered our questions during our video chat by saying that his staff is the most valuable asset in our venture and that he continues to pay them. They can be managers or partners because they have lots of vertical mobility within the company. Our success is due to our employees.Your company's core values must always prevail when faced with difficult situations that involve people. If the business is not managed well, it can lead to a complete collapse.Related: How cultivating relationships helps you (and your company) thrive4. Expansion or launch of a new businessBad economies don't always bring down all businesses. Some businesses can reap the benefits of the downturn. These companies can expand their operations, or spin off a portion of their business to pursue more lucrative ventures.Notable is the fact that many of the most famous and successful companies in the world have been able to survive a recession. Microsoft entered the market in the 16th month after a US recession. Apple's rise to global dominance began during the dotcom crash of the early 2000s. The dot-com bubble was also when Netflix entered the market. Airbnb started in the financial crisis of 2007.Enterprise companies are not the only ones that innovate and expand in difficult times. Local business owners are finding ways to expand their businesses. Businesses now have the unique opportunity to reach new clients and reach new customers online thanks to the digital trend to buy online.This strategy was what got Lao Ma (located in Flushing, NY) through the pandemic. Hua Dong Liu, the owner, said via email that we focused on social media ads targeting people who our research indicated might be interested but were not typically interested in Chinese cuisine. We experimented with advertising to new segments of customers when business growth was slow. It worked for us, fortunately.It is not easy to launch and scale a business in times of economic uncertainty. The business owners who succeeded made a huge effort to prepare for the risk. They understood they were up against a daunting mountain of challenges. These are times when companies that thrive in economic uncertainty can show their resilience and ability to dominate a market.Put a bow on itBusinesses must adapt to turbulent times. Adapting to market conditions is more than an option. It is a requirement. Sometimes this means restructuring or laying off employees. Sometimes, the situation presents opportunities for expansion and investments. It is crucial to make informed decisions in all these cases.Before the outcome is known, it is impossible to determine which decision was right or wrong. The future is not in our control. It is important to put forth effort and exercise prudence in order to ensure that you are able to stand behind the decision you make.
