If there is one thing that is certain in today’s business landscape, it is that we are in a time of extreme volatility. Markets are fluctuating daily, tariffs are on and off, interest rates remain high, and there is global unrest that is all creating uncertainty. For business owners, times like these can feel like a high-stakes gamble as the rules of the game are constantly shifting. But those business owners who are resilient do not fold; they adapt. They look for ways to pivot when the ground underneath them simply won’t stop moving.
There are two strategic options for business owners in this climate: they can either look for ways to grow through the chaos and uncertainty, or they can take the opportunity to make their exit. The key is to be intentional with the path you choose and maximize the value either way.
Grow Through It: How to Find Opportunity in Instability
When there are periods of great disruption, there can also be opportunity for significant growth. Take for example the many companies who flourished after the Great Recession in 2008. Airbnb, Uber, Slack, and Venmo all launched around 2008 or 2009 and went on to tremendous success, but it was not because they were just doing more of the same thing. It was because they were innovative, and they showed operational discipline. They saw need and opportunity and came up with new ways to solve consumer problems.
While you might not be launching a new venture right now, existing business owners can still seize the opportunities that a volatile market presents, but you must also double down on operational efficiency. That means cutting out the waste, improving process and procedures, optimizing margins, and finding other ways to cut costs such as renegotiating contracts or tightening inventory management. Trimming unnecessary costs can help free up the funds that allow you to invest in other areas, expand, or maybe even make some strategic acquisitions.
In times of volatility, consumer behavior can also pivot quickly. Today’s tariffs are a prime example of a factor that can have a tremendous impact on consumer behavior and a business’ bottom line. That means business owners must be ready to pivot quickly when it comes to pricing or distribution. They must track trends to project demand and be ready for what is coming next.
If you want to grow during an uncertain time, access to capital is essential. Solidifying banking relationships, cleaning up financials, and assessing funding options are key steps to access the capital you need to expand, whether that means growing your business or acquiring others.
Time to Go: Creating an Exit Strategy
While some businesses see a volatile market as an opportunity for growth, for others, it simply does not align with their goals or their appetite for risk. For those business owners, it might be time to look at the options for an exit. However, timing and positioning are everything. To make the most of an exit in an uncertain time, you must ensure your house is in order.
This kind of market can create more motivated buyers, so as a seller, it is important to be ready for the due diligence process and position yourself in the best way possible. Are your contracts all in order, have you conducted a thorough audit of your financials, are you ready to address any issues that might arise? You will also want to highlight your resilience to potential buyers. Demonstrate ways in which your business has weathered previous downturns, pivoted successfully, as well as how you are positioned for future growth and success.
While it might be tempting in this kind of climate to jump at the first offer, experienced advisors can help you to create competitive tension and drive better outcomes. They can also assist with creative deal structures such as earnouts, seller financing, or strategic partnerships.
Most importantly, if you are considering an exit, plan for what is next. Are you looking toward retirement or a new venture? Do you want to walk away entirely, or are you looking to retain some involvement in the company? Planning for the future and what you will need moving forward will help to inform and direct the terms of the sale.
No matter which route you choose, an uncertain market is not a time to be passive. It is a time to be proactive. It is a time to take advantage of the opportunities that exist, whether that means going for growth, or making an exit. Uncertain times reward those who act with clarity and vision. Assess your options and go forward with the route that best aligns with your goals.
