How Your Communication Business Can Thrive In Economic Uncertainty

Kenya’s economy is currently going through strong headwinds with everyone feeling the

brunt. Businesses have closed shop, thousands of employees have been laid off and the government has adopted austerity measures in order to divert resources to sectors that can help stem a looming recession. The communication industry is not immune to vagaries of the economy as clients review their marketing budgets. Most corporates have taken the difficult decision to let go of independent, high-retainer agencies, focus on return on investment and high-value that has in past years eluded them by looking at boutique marketing agencies coupled with strengthening their own internal marketing infrastructures.

Apart from tightening our belts, lean times force us to adjust accordingly and figure out how we can keep our heads above water- as Sun Tzu put it, “In the midst of chaos, there is also opportunity.” Clear cut strategies and razor sharp focus can lead to accelerated growth and forging a business that is able to withstand economic turbulence. You can start by assessing the competition. Most agencies service clients from different sectors at the same time. Perhaps you can consider focusing on one key sector e.g. finance, digital, FMCG etc. This decision is usually based on expertise and the strength of staff.

It’s also important to evaluate your organization- what are your offerings, strengths, weaknesses, are people in the right roles and is value being added in ways that mean the most to the agency, your staff and clients. Though markets might be contracting, it’s important to identify the communication needs that can be addressed. Is your agency future based, client centric and innovative? How can you offer new services and products? How can you adopt technology to serve a variety of businesses that are rapidly gravitating towards artificial intelligence (AI)?

Economic downturn comes with concern around job security and market share. It’s important that you assess risk and your plan for retaining and developing top talent. The most important factor of managing your business in a recession is to manage all your stakeholders. Make sure that investors, employees and clients are assured of continuity and prepared for drastic economic changes. More importantly, company preparedness is imperative due to the reality that economic uncertainty will face any and every company. Building a culture of trust within the team is essential, having great customer service and high-level execution mandatory and ensuring financial unassailability and accountability, requisite. Additionally, as Tim Cook articulates, innovate, not only by creating new service streams, but by making your current offerings better for your customers.

In the film “The Mechanic”, an apt quote in Latin serves as a metaphor for business, indeed, for life: “Amat Victoria Curam” – Victory loves preparation.