Recession Ready? How Sustainability Strategies/Data Could Prepare Your Business to Survive, Accelerate Out of Economic Downturns
– September 22, 2022 –
Note: The following content is based on an upcoming piece Quest Resource Management Group wrote for Fleet Equipment Magazine about sustainable efforts for fleet operators ahead of a looming recession. Our original guide has been repurposed and adapted for your business.
When it comes to recession, here’s what’s certain:
- Another one is always coming
- Now is the best time to prepare
- Putting sustainability strategies/data at the top of your priority list is one of the best ways to protect your business during one
Business leaders who put such efforts into practice can use timely, accurate forecasts to maintain safe and efficient operations during and following a recession. As a result, you’ll be better positioned for what’s to come and will see the most payoff within your organization.
Review the four value points below and ask yourself: As a leader, am I doing everything to keep costs in line with my service levels?
Importance of Comprehensive Data/Consequences of Poor Data in a Recession
With an impending sense of doom across industries, businesses often make rash, impulsive decisions. New projects are put on hold, expenditures are reduced too low, and employees are laid off brutally. The unpredictability of future events adds worry to leaders as they navigate through a possible recession.
Data becomes a savior when times are tight. It offers a cushion and empowers businesses to make decisions with the necessary sense of familiarity and comfort. Moreover, research has demonstrated that companies with robust sustainability strategies backed by data tend to be more resilient and fared better than those focused solely on profit maximization during previous downturns.
However, data doesn’t offer the required insights unless you know how to transform it into business intelligence and actionable items. Fortunately, waste management and recycling companies can help brands identify cost savings by finding opportunities to reduce expenses. Understanding how much waste and emissions your operations produce can uncover efficiencies that help you save resources in the long run.
Weathering the Storm with Quality, Comprehensive Data
Fine-tuning your sustainability strategy and making strategic investments in data and reporting can reduce your company’s exposure to risk, helping the business to hit the ground running when the economy starts to recover. Using quality data that identifies core and material issues in your strategy can significantly contribute to your bottom line and help mitigate future price crunches in materials and energy.
For instance, as the movement of your business begins to shift, you may be less operational. Suppose supply chains become more disrupted, and you cannot get all you need and provide what your customers expect. By having access to data, you anticipate these fluctuations and make data-driven decisions. Additionally, as prices drop, waste and recycling collections will also be reduced to a more cost-effective level.
If your team is already in the habit of cost savings and efficiency throughout the recession, you’ll be better equipped to hit the ground running when the economy starts to recover.
Reporting for Forecasting: Improve Efficiency & Gain a Competitive Edge
Every industry is competitive, and companies are constantly adapting strategies to keep up with investor, customer, government and public expectations. Developing an effective sustainability strategy will give you the competitive edge during an economic downturn.
When data is used to remove weak links, other businesses within your industry will pale in comparison. This will help your brand stand out and keep your head above water during a recession.
Additionally, the resources saved during this process open more opportunities to shift your focus toward business improvements. Because let’s face it: weathering a recession is better in a planned environment.
When the Clouds Part: Prepare for Post-Recession Growth
When the economy picks up steam again, and your sustainability strategy is in place, your business can:
- Prepare for production to ramp back up with as many operational hiccups.
- Source new suppliers that will help save even more because you’ll have a comprehensive view of your business and what operations work best.
- Separate costs that should be cut from the essential expenses. A sustainability strategy helps establish an agile culture, allowing leaders to act precisely and know the difference between cutting fat and bone.
Investing in sustainability will help make sure the money your organization spends leads to actual results. So why not have better eyes fixed on the ins and outs of your business? After all, it could serve as the dam that keeps the roaring waters of recession at bay. When you can rely on resources to run, you can gain a competitive lead and weather tough times – perhaps making your business stronger than before.