Strive to make change your partner in growth

As I considered my topics for this January 2025 column, one thing we all knew was that we’d have a new presidential administration. And regardless of who won, it would leave about half of all voters upset or even fearful. 

But this isn’t a column about politics. In fact, it’s about the need to transcend politics, because as business leaders, creating companies that can perform regardless of the political or economic environment should be our foremost goal. I don’t mean to suggest that you can create a company immune from exigent shocks, but you can certainly prepare for them.

Here are a handful of steps that are good for any business, but particularly helpful in times of uncertainty.

1. Diversify your revenue streams, whether through new offerings, customers or geographies. Growth rarely ceases across all sectors and geographies, so sometimes we must go find it.

2. Build strong customer relationships that extend beyond price by exceeding expectations on service and anticipating unmet needs.

3. Carefully manage cash to be ready for surprises. A strong enterprise resource planning tool can help here.

4. Be nimble and ready to adapt as conditions change. Strive to find opportunities in the threats you perceive that could erode the value of the products and services your company provides.

5. Leverage technology to both innovate and drive efficiency. There are countless new tools allowing companies to do more with less, and they’re improving at a breathtaking pace.

Of course, any new administration means new legislation, regulatory changes and countless other steps that may affect your business. Even if you’re not a political wonk, it’s best to stay informed of these changes to take full advantage of them. In addition:

1. Plan for various scenarios, including tweaks to trade policy, regulations or geopolitical relations. This can provide a critical head start as proposals go from ideas to legislation.

2. Diversify your supply chains. We all experienced the incredibly fast and dramatic effect on the supply chain brought on by the pandemic. While I pray that’s a once-in-a-lifetime event, it’s best to be ready for anything these days.

3. Maintain a great relationship with your bank. Minimize debt and try to build up emergency funds or access to credit that allows your company to withstand possible disruptions.

4. Stay connected and on good terms with everyone else connected to your business. That includes customers, of course, but also trade groups, local authorities, peers and others who can help you understand and leverage political changes.

Change has always been a constant in the world, and its pace seems to accelerate daily. So, whether you’re excited about the next four years or fretting over them, it’s wise as a business owner to embrace, anticipate and ultimately benefit from the many changes that we’re certain to experience in the next presidential term and beyond. 

Stewart Kohl is Co-CEO of The Riverside Company

Stewart Kohl

Co-CEO
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