2021 is the year for all businesses large and small to focus on profit, sustainability and resilience.
Despite the commencement of the global roll out of the COVID-19 vaccine there is still significant level of economic uncertainty in Australia as businesses continue to struggle to see a clear way forward. Despite the Government rhetoric that the ‘economic numbers look promising’ there is still a significant undercurrent of uncertainty and anxiety.
Exit the unicorns (or companies who put growth over profit) and enter the ‘Camels’ ie companies who focus on profit, sustainability and resilience.
In the animal kingdom, Camels far from show pony’s, they are well known for their adept survival capabilities in harsh conditions. Moreover, their innate imprinting for self-survival.
In the business world today, Unicorns are still being aggressive and spending to acquire customers. However, their numbers are dwindling as many have become victims of the economic fallout of COVID-19. Meanwhile herds of business Camels are appearing. Readying themselves to pivot should the economic climate shift.
Whist Camels may not sound as glamorous as a Unicorn, they are the types of businesses that are able to control cashflow and expenses, preserve profits and outlast any financial drought that may befall them.
With economic uncertainty still looming, there’s been a shift in the unicorn ‘growth at all costs’ mindset. And, as businesses look at how they can survive an increasingly likely economic drought, the focus is turning from unicorns to camels.
How to adjust your business to think and act like a Camel:
- Shift the focus away to profitable growth.
- Reduce expenses without cutting expenses – agree updated payment terms with your suppliers
- Improve cash collection – reduce receivables.
- Build relationships with suppliers.
- Deepen relationships with customers – increase your one-on-one efforts and supplement with marketing automation.
- Fast track digital.
- Reward your team so that they go the extra mile for you.
Camels are very smart and are instinctive.
The question then remains. Are you a Camel or Unicorn.