The dream of any company, regardless of size, geography and personal tastes of the owner: growth, stable, confident growth. Sustainable growth and development. The term sustainable development itself came from the “well-fed West” and means, first of all, environmentally friendly development: when it’s good for the business itself, it’s good for its employees, it’s good for the company’s external environment – customers, partners and, as a result, the whole world.
A utopian concept for the vast majority of businesses in Ukrainian realities. Our business understands “sustainability” more literally:
- absence of sharp failures and serious problems in the company;
- albeit a small but constant expansion: new geographic markets, new products, new client niches;
- stable growth in sales and financial performance.
All factors influencing the stable development of a particular company can be divided into two groups. The first, codenamed “Yes, what can we do?” These are external factors that are difficult or impossible to influence: the political environment, regulatory policy, macroeconomic factors and market conditions, “black swans” and force majeure, the behavior of competitors in the market. All this is in abundance in Ukraine. Adapt or try to change the external environment – the choice is up to companies. Separate successful cases of lobbying by business associations for the adoption or vice versa, non-adoption of legislative norms regulating the work of a particular industry are an excellent illustration of the benefits of an active position of business.
Even in an extremely turbulent national political and economic business environment, sustainable development for specific companies, and not only large, but also ones, is possible and depends on their actions. So what does a particular medium-sized business need to ensure its development?
Competent risk management and prioritization :
Risk management is not about those complex calculations that are supposedly needed only by companies in the financial sector. In “simple words” risk management is about how not to miss and prevent possible negative events for your business. Many and many businesses “fly out of the market” because they did not bother to foresee and “insure” against typical business risks: working with one key client, high debt load, changing consumption trends, leaving one of the critical employees (often with withdrawal of the customer base), etc.
Black swans in specific business stories are most often not so black already – in the sense that they are not as unexpected as it seems. Relying on chance, burying the owner or top management in the operating system to the detriment of assessing business prospects, too much hope for positive scenarios – the main part of the reasons for such alleged swans.
Adaptability and timely response to external challenges :
Whoever stood up first – that and slippers. Who reacted to the external challenge faster than anyone – skims the “cream” from the market. Who reacted one of the last – has a chance of serious problems. An excellent fresh case is the current situation with the personnel in the country, which business no longer describes in any other way than “hellish personnel shortage”. Almost all businesses are feeling the consequences, but so far only a few are ready to adequately respond to this – not only to raise salaries, but to rebuild business processes, approach to people and corporate culture, work style, motivation.
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