Even though humans are creatures of habit, change is an important success factor in business. This applies in particular to medium-sized companies, which are known in Germany for their innovative spirit. But how do you strategically approach investments in difficult economic times?
Medium-sized companies that shy away from investing due to the recession and prefer to stick to tried and tested or even save up to the point, are playing a risky game — that is for their long-term competitiveness. Not all investments cost a fortune, so here are a few points that you could include in your considerations. These tips can also help startups to establish themselves permanently in the market.
Investments in existing customers: Effective, but often underestimated
Investments in improving customer relationships, such as through optimized CRM systems or customer loyalty programs, can bring significant benefits. They increase customer satisfaction and loyalty, which has a positive effect on sales. Have you already examined all options before embarking on new, perhaps significantly more expensive paths?
Transformation through digitization and training
In order to increase efficiency and respond to new market developments, investments in technologies and digitalization are essential today. It is at least as important to also invest in the continuing education of your personnel in order to expand their skills and strengthen your company's innovative strength.
Startups as partners for product development
Innovative products and services are the key to success. Companies without their own R&D department should consider strategic partnerships with or the purchase of startups. But be careful: Many startups start out promising and yet fail. Therefore, plan for possible risks so as not to jeopardize your previous success by investing too much. And for startups, look around to see which companies you would consider as partners and actively reach out to them.
Expanding into new target groups and markets
Is the German market saturated? Expanding abroad or adapting your products to new target groups could then make sense. Investments in experts who know and can realistically assess the target markets are essential in order not to involuntarily sink investments.
Sustainability as a competitive factor
How sustainable is your company doing business? Investments in sustainable practices in purchasing, production and distribution are now more important than ever. A clever placement of these investments can achieve visible and comprehensible effects and position your company as an attractive business partner.
The untapped advantage: Strategic partnerships
A competent management consultancy can develop and review individual scenarios for you. My book “The Unused Advantage” provides a first insight. It offers ideas on how you can secure competitive advantages and achieve sustainable growth through strategic partnerships and wise investments.
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