If you’ve been in business long enough, you have learned that economic uncertainty isn’t a question of “if”, it’s a question of “when.” Since Horizon Forest Products opened its doors in 1992, we’ve weathered our fair share of storms. From the dot-com bust of the early 2000s to the Great Recession in 2008, and most recently, the global upheaval caused by COVID-19. We’ve learned that survival (and more importantly success) comes down to how you respond.
Here are three things I believe every business should focus on when the road ahead gets shaky:
- Stay Connected to Your Customers
This is critical. In every downturn we’ve faced, staying close to our customers (really listening to their needs) has been our lifeline. When the economy is unpredictable, our customers are navigating the same rough waters as we are. Be proactive, be present, and be useful. Sometimes, the best thing you can offer isn’t a product. It’s reassurance, reliability, and the willingness to go the extra mile. - Protect Your People and Your Values
During the 2008 recession, the housing market collapsed and the ripple effects hit everyone, from builders to distributors to contractors. Everyone was forced to tighten their belt. But, we also made it a point to protect our people. When things get tough, your team becomes your most valuable asset. You may need to pivot roles or restructure how you do business, but if you protect the values and relationships you’ve built, you’ll be in a stronger position when the dust settles. - Stay Financially Lean and Operate Intelligently
Economic uncertainty demands discipline. That means keeping a close eye on cash flow, trimming unnecessary expenses, and improving efficiency. At Horizon, we’ve learned to invest in systems and training that make us better, not just bigger. Growth for the sake of growth is dangerous at any time, but especially so in uncertain times. Instead, focus on strengthening the foundation so you can withstand short-term volatility and be ready when opportunities return. Keep planting seeds as I have always said.
We’ve seen tough times before, and we’ll likely see them again. But I believe that when you lead with integrity, adapt with courage, and focus on people first, you don’t just survive uncertainty, you build a company that’s strong enough to succeed through it.
David Williams is the vice president of Horizon Forest Products. To learn more about Horizon Forest Products, visit HorizonForest.com.