In times of economic uncertainty, fear becomes a powerful force.
It creeps into boardrooms and balance sheets. It makes strong leaders second-guess, bold strategies stall, and long-term thinking fade into the background. The instinct is understandable: cut costs, hunker down, and ride it out. But here's the truth: survival alone is not a strategy. It’s a reaction.
If you’re building something of value (a business that can thrive) you need more than instinct. Research highlights that 94.5% of SME resilience comes from factors such as strategic partnerships, technology adoption, employee engagement, and customer relationship management – all of which form crucial components of long-term strategic planning.
In this newsletter, we’ll explore these principles and hopefully impress upon you the importance of long-term planning that doesn’t wither in the face of short-term shocks. |
Panic is expensive
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It’s often easy to spot the symptoms of panic in business:
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Hiring freezes that leave key roles vacant for too long.
Reactive cuts to marketing or R&D that quietly weaken the future.
Sudden changes in pricing or positioning are driven by fear, not insight.
Selling off valuable assets just to stay afloat.
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These moves might buy you time. But they often come at a hidden cost – undermining the very things that make your business valuable: your people, your brand, your resilience, and your trajectory.
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Disaster Recovery and Business Continuity readiness: |
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Source: bizval internal data |
As the storm passes (and it always does), the businesses that panicked will have to rebuild from a weaker position. The ones that paused, reassessed, and made moves rooted in strategy? They’ll emerge stronger.
So how do you avoid getting swept up in short-term thinking when everything around you feels unstable?
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Zoom out to regain control
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When the seas get rough, captains don’t throw away the map. They read it more carefully. They check their position. They replot their course based on where they want to go and not just what’s right in front of them.
The same goes for business owners and leaders.
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Understanding of unit economics: |
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Source: bizval internal data |
Now is the time to zoom out.
Ask the big questions:
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What’s our business really worth today—and what’s driving that value? Where are we most profitable, and where are we overextended? What strengths will carry us through a downturn—and what weaknesses will drag us down? If capital gets tighter, where should we invest our limited resources? What’s the long-term plan—and how do we keep moving toward it?
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These questions aren't about spreadsheets. They’re about clarity. And clarity is power, especially when the environment around you is shifting.
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Valuation as a strategic tool
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Here at bizval, we often speak with business owners who associate valuations only with exits, funding rounds, or legal requirements. But in truth, a valuation is much more than that. It’s a tool for strategic planning.
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Why owners run valuations: |
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Source: bizval internal data |
A well-prepared valuation gives you a clear-eyed view of your business’s current value and the levers that affect it. It tells you what’s working and what isn’t. It helps you make better decisions about what to double down on, what to trim, and where to pivot.
And perhaps most importantly: it brings long-term thinking back into the conversation.
Even if you're not planning to sell or raise capital, understanding your valuation helps you:
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Protect what matters most in a downturn Set realistic goals that build enterprise value Communicate clearly with stakeholders—employees, investors, partners Identify opportunities to grow, acquire, or restructure with confidence
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In short: valuation gives you a compass when everything feels like chaos.
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The long game wins
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History has taught us that downturns and disruptions are part of the entrepreneurial journey. Recessions, pandemics, inflation, and shifting markets will come and go. The businesses that endure are the ones that keep their eye on the long game.
And in that long game, every decision you make today echoes in your future valuation.
So instead of asking “How do we survive the next six months?” ask: |
“How do we emerge from this storm stronger?” “How do we keep building something valuable, even now?” “What will future investors, partners, or buyers see when they look at us in two years?” |
These are the questions that separate reactive businesses from resilient ones. |
Weathering the storm with bizval
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At bizval, we believe that every business owner deserves access to the kind of strategic insight that drives long-term success. Our valuation tools and expert advisory services help SMEs across industries understand their true worth so they can plan smarter, act faster, and lead with confidence.
Whether you're navigating a downturn or simply want to future-proof your strategy, a valuation isn't just a number. It's your business’s story, told with clarity. Get in touch today and let us help you tell that story. |
New podcast alert!
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Don’t miss Graham Stephen and Kyle McCulloch’s recent appearance on the Independence By Design podcast hosted by Ryan Tansom. In this wide-ranging conversation, they unpack why most valuation advice fails business owners and how bizval is flipping the script with a cash-first, future-focused approach.
If you’ve ever felt confused by EBITDA multiples or frustrated by jargon-filled reports, this episode will change the way you think about what your business is really worth.
Find it here on Apple Podcasts or on YouTube. |
