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Businesses take time to get ahead, but what do you do when your industry experiences a downturn? When the market tanks and your competition become stiffer, you must learn how to out-innovate your competitors.  

Itec group has your back, however, even during trying times. We have the tried-and-true tips to get through challenging times while still coming out on top.  

Statistics have shown that companies that make an effort to keep innovating during market downturns tend to outperform the market and grow faster in the years to come. Research from Northwestern University's Kellogg School of Management suggests that strategic investments in innovation can help determine which companies will thrive, survive, and stick around for the long term.  

Are you ready to come out on top during a market downturn? Let’s look at some ways you can out-innovate your competition when the market tanks.  

Don’t Copy the Competition, ‘Steal’ the Competition 

Don’t get us wrong, you can look at your competitors and analyze them to determine what trends, if any, are slowly ticking upward. That’s a perfectly reasonable thing to do and can help you determine your own business’ trajectory. 

However, what you need to avoid is trying to mimic or even outright copy other businesses that appear to be doing well despite the downturn. The problem is that just because a company is performing well in the initial dip doesn’t mean it’ll continue to do so.  

Rather than trying to copy what APPEARS to be working, you need to innovate on your ground floor. Take this as an opportunity to recruit talent from competitors as they become available. During volatile times, people will be looking for businesses that care about them and share their values.  

If you don’t have the budget for a new hire, that’s OK. You can still ‘steal’ the competition by pulling ahead of the curve and making your business more appealing to those looking for new opportunities. Read further, and we’ll tell you how. 

Focus on Streamlining Operations and Optimize Customer Service 

Instead of getting caught up in long-term uncertainties, focus on what you can change tangibly right now. What businesses need more than ever is streamlined operations and great customer service. By keeping your business running smoothly and putting your customers first, you’ll increase the likelihood that your clientele will choose your business over the competition. 

Let’s look at the 2008-2009 financial crisis. Fast food powerhouse McDonald’s focused their cost-cutting measures on items such as reducing energy consumption, streamlining operations, and creating a series of simplified menu offerings (dollar menu items) to push their efficiencies further and cut costs.  

You also need to hone in on your customers’ needs. In McDonald’s’ case, people still needed their quick, easy, comforting foods – but they needed them to be at a fraction of the cost. McDonald’s understood what their customers wanted at the time and focused on delivering products that directly appealed to their desires. 

Not only this, but these simplified items were also cheaper to produce, meaning McDonald’s wasn’t facing a severe financial loss by trying to create a new, “fancier” product in the hope of getting ahead of the curve. Essentially, they read the room, and they delivered. 

Strike a Balance Between Cost-Efficiency and Growth 

While you continue to focus on cost-effective ways to innovate to weather the market downturn, it's important to strike a balance between short-term cost-cutting and long-term growth. 

There’s a time and a place where the most cost-efficient innovation comes through groundbreaking products or services that make your business stand out.  

However, you need to analyze your respective industry to determine if that big a leap is the right move. In some cases, it very well might be. In others, innovating existing products and services to enhance their value may be not only more cost-effective but a better move for long-term survival.  

The trick is to analyze your business, the market, and your competitors to determine what the right move is for you.  

It’s a balance between weathering the storm and continuing an upward trend of growth. There is a time and a place to push for either. 

Check-in with Your Consumers 

In this day and age, there’s something to be said for investing in ways to develop stronger consumer relationships. This allows you to anticipate their wants and needs, as well as improve their overall buying experience. 

By keeping your hand on your customer’s pulse, you can steadily predict where they’re going to be willing to invest their money, even during difficult times. This insight can reveal key factors that might be missing from your business – factors that could encourage them to spend their hard-earned cash with you. 

Don’t be afraid to connect with your audience during trying times. Ask them what they’re looking for, what their pain points are, and what they would be willing to spend money on if you were to apply new innovations to your products and services. 

Empower Your Current Staff 

During times of crisis, you’re only as strong as your weakest link. However, that doesn’t mean the solution is to immediately start cutting staff to save costs – rather, you can empower your staff to help find solutions and maximize efficiency. 

Maybe you have a gap in your innovation plan that needs to be filled that you’re unable to outsource. This is when you can look internally and empower your employees to be a part of your long-term growth plan to keep the business running even through difficult times.  

Here are some ways you can help encourage your employees to be a part of your innovation plan:  

• Provide transparent and regular communication 

• Offer opportunities for upskilling and training 

• Recognize and reward employee contributions 

• Involve employees in decision-making processes 

• Foster a supportive and collaborative workplace culture 

• Maintain flexibility with work arrangements 

• Encourage innovation and creative problem-solving 

• Invest in employee well-being programs 

• Set clear and achievable goals 

• Reinforce a sense of purpose and alignment with company values 

• Reassure their job security 

 
Market downturns are just as scary for employees as they are for business owners. They may worry about their career prospects, the potential for layoffs, and an inability to support their families. Make sure your valued employees know they can be a part of the solution, rather than their elimination being the solution.  

By leveling up your current employees, not only do you further maximize efficiency, but you can also save a good deal of money if you don’t have the resources to outsource.  

Invest in Digital Marketing to Promote Your Growth 

Investing is daunting during a market downturn. However, to own a business is to diligently and intelligently direct the flow of money in ways that help the business grow. One of the primary means of growing your business is making sure your business is getting out there through smart, innovative marketing.  

Your business is only as valuable as its visibility. If someone is searching online for the “best place to buy tires in my area” and your website isn’t optimized to appear high in the search results, you could be missing out. And that allows your competitors to go in for the steal.  

Some examples of innovative digital marketing techniques include:  

• Leveraging interactive content such as quizzes, polls, and calculators. 

• Creating interactive content like quizzes or polls. 

• Using AI chatbots for personalized responses. 

• Optimizing for voice search. 

• Adding AR or VR to enhance user experiences. 

• Making content shoppable for easy purchases. 

• Including gamification to boost engagement. 

• Sending personalized email campaigns. 

• Partnering with influencers for brand promotion. 

• Using localized ads to target nearby customers. 

• Sharing user-generated content to build trust. 

• Posting short, temporary content on Stories or Snapchat. 

• Running geo-targeted ads for specific locations. 

• Making helpful video tutorials or hosting live streams. 

• Trying AI tools for faster content creation. 

• Sharing insights with simple data visuals. 

• Using retargeting ads to re-engage visitors. 

• Hosting webinars or virtual events. 

• Telling engaging stories through videos or blogs. 

• Exploring newer platforms like TikTok. 

• Selling directly through social media features. 

Choose itec group 

As industries continue to grow and advance, so does the need for skilled staff to fill the gap. Itec group has employment solutions that meet the needs of modern-day businesses. We understand that your business requires a skilled workforce to drive you forward into the future, and we specifically match you with the right professional for the job.  

If your business is experiencing job losses because of market downturns, we can offer you employment solutions to keep your business going. Don’t leave it to fate – trust in the leading-edge employment solution providers proven to work. Contact us today.