Today is economy day, with three pieces of research, each of which helps paint a picture of the state of play.
Let’s start with the overall economy. The Washington Post has a review of those businesses that are flourishing during the pandemic. Three traits appear that show which companies are booming. Quoting liberally from the article, they are “in the right position to capitalize on shifting consumption patterns, as the pandemic obliterates demand for goods or services that require sustained face-to-face contact.
Their balance sheets are armored against sudden financial damage.
And their management teams demonstrate agility in adapting to a reshaped marketplace.”
Full article in the show notes.
Why do we care?
Those three criteria are important for two reasons. First, they are the criteria to evaluate your own business. Technology services providers are already well positioned to capitalize on the change in buying behavior, so this one is easy. It’s the second two to think about.
I’ve been preaching about ensuring you hoard cash and manage your business assuming a drop to create that armored balance sheet. Here it is broadly.
Now, let’s talk about adapting. My takeaway today is this – here is how you can look at your own customer base to understand who will flourish and who will suffer during as this extends further, as conditions are not getting better. Additionally, apply this analysis to which customers you target and engage with and how you find opportunity… which we will discuss next.