“A brand for a company is like a reputation for a person. You earn reputation by trying to do hard things well.” Jeff Bezos
The coronavirus pandemic has overturned most aspects of daily life, not least the way we work. For many, that has brought with it a period of great uncertainty and possible job insecurity. But for aspiring entrepreneurs, it has also created a window of opportunity, economic downturns are, in fact, some of the best times to embark on a new business. General Motors, IBM, Disney, Toyota and HP are businesses born during or in the wake of economic downturns, such as The Great Depression and World War II. Airbnb’s founder and CEO Brian Chesky said in a recent interview “we were literally born in a crisis,” referring to the 2008 global financial crisis.
Two of entrepreneurs’ favourite topics are growth and scaling in business. The words are used interchangeably but there’s a crucial difference between growth and scaling in business terms, and it’s an important distinction to understand what really happens when businesses grow and what kind of growth you should be looking for. When companies grow, they are increasing their revenue equally as fast as they are adding resources to enable that increase. When companies scale, they add revenue at a faster rate than they take on new costs and that is where you want to be!
Outsourcing is a business practice in which a company hires another company or an individual to perform tasks, handle operations or provide services that are either usually executed or had previously been done by the company’s own employees. As we navigate our way through the current crisis businesses leaders will need to determine the most scalable, cost effective and high quality ways to deliver their products and services.
The investment industry is busy right now addressing immediate challenges within their existing portfolios as some of their clients struggle to remain viable. There may also be changes to the types of business that the focus on going forward. This should not put businesses from looking for investment but it does mean that the level of scrutiny applied will be that much greater and that is where we can help.