When you work in fintech and inventory optimisation, you are more aware than other that ups and downs in the economy are inevitable, so companies that prepare only for opportunity may succumb to adversity.
Neither the high points nor the low points of the business cycle are permanent. Expect an endless series of economic growth spurts, slowdowns and recoveries. Knowing how to manage your business, forecast and optimise your inventory in all types of economic conditions is vital for long-term profitability and success.
Over our time working and building inventory optimisation software we have seen that companies tend to respond to economic conditions either proactively or reactively. Proactive firms prioritise economic forecasting, prepare for profound changes in business conditions and, thus, perform well in any type of economy. Reactionary companies pay little heed to economic forecasts, focus almost exclusively on their customers and competitors, and operate mainly in response to current business situations.
Learning to manage the impact of the business cycle strategically yields both defensive and offensive rewards. Companies that respond to broad economic trends in a timely fashion not only brace themselves for business slumps, they also position themselves to acquire assets inexpensively, recruit displaced talent and increase their market share. To prepare proactively for turns in the business cycle, corporate leaders must take two simple steps, and both of these can be achieved with Intuendi.
- Establish an economic forecasting routine.
- Apply forecasts to strategic and tactical business decisions.
If economic forecasting seems too arcane for your company, consider the relative importance of being able to guess what your competitors will do next. No amount of competitive damage compares with the negative consequences of failing to prepare for a significant upturn or downturn in the business cycle. Indeed, most business managers would do well to worry less about their rivals and more about the macroeconomic future.
So take the first step for your business future and start using Intuendi!