During times of atmospheric drought, there’s not enough rain to nourish the earth for long periods of time. The lack of precipitation can cause a variety of problems including damage to crops and a shortage of drinking water.
These effects can lead to devastating economic and social disasters, such as famine, forced migration away from drought-stricken areas, and conflict over remaining water.
A drought can last months or even years and I’m not just talking about a lack of water.
Businesses can suffer times of a lack of vital resources too. These resources might be contracts, staff, or sales revenue.
When droughts become harmful, officials often mandate restrictions on the use of water to conserve as of the vital resource as possible. When a drought occurs, the existing pressures on the ecosystem’s natural water supplies are amplified. The same is true in business. When budgets are tight, it’s easier to spot economic drains.
Business leaders pour over profit and loss statements and yearly projections in an effort to forecast future earnings. When the prognosis is not promising the first thing that many leaders do is reduce staff and other expenses. Hiring freezes and spending restrictions top the list of what happens when the revenue dries up. However, that’s not the only resolution to a lack of resources in the pipeline.
Another strategy is to be hyper-focused on core business lines. Search for inefficiencies to reduce the drain on staff and dollars first, then brain storm on what could bring dollars into the business quickly. This may be alternative ways than your business model allows for currently
For example, if the products or services are sold in traditional brick and mortar locations, expand to ecommerce. Use social media and specialty groups online to market the product too. It will likely require additional talent, but the business may have that kind of untapped talent on staff.
Include a diverse group of people on the team to develop new ideas and explore the possibilities. The strategy used to shore up the business, may include tapping into lines of credit to hold the business over until the financial drought is over.
Sometimes when things look their bleakest, it’s just a time to prepare for the opening of the flood gates of opportunity. So don’t despair over the lack of rain, put the right people and processes in place to take advantage of the flow of riches when the flood gates open.