In Times of Change, Standing Still is the Greatest Risk of All

As the old saying goes, “Fortune favors the bold.” Economic downturns often serve as catalysts for growth—for the visionaries daring enough to lean into them. Thriving companies such as Uber and Venmo were created when the market was down and under pressure. Netflix introduced its streaming service during the Great Recession in 2008. Microsoft was founded in the wake of a recession exacerbated by the oil crisis in 1975.

But the proof extends beyond success stories of these household names. Research from McKinsey shows that, in the long run, companies investing in growth initiatives throughout the economic cycle fare far better than those that don’t, generating a nearly 17 percent increase in returns to shareholders than businesses that play it safe during a crisis.

So how can leaders learn to embrace change? A big part of it involves managing fear. 

At BDA, we help companies expand into new markets—particularly Asia. Despite being intrigued by the possibility, many businesses are apprehensive about entering an emerging market at this time. Perhaps they’ve seen strong past success in their local market, but growth has tapered off. Or they’ve become complacent amid early successes and have forgotten how to innovate. Whatever the reason, sales have stagnated, and businesses are looking for a new way forward.

There is a path towards a promising and robust economic future, but it’s hard to visualize that path when the mind is clouded by fear. All too often, key decision makers are paralyzed by what, on the surface, sounds like reasonable misgivings. They might think: If current sales are low, why would it be different elsewhere in the world? What if the investment is too high? What if there are too many overhead costs? If we were to expand, we’ll have to do all the heavy lifting ourselves. As is so often the case, fear is ultimately a barrier preventing you from recognizing opportunity—and seizing upon it.

As counterintuitive as it may sound, playing it safe is costly. Even as your business stands still, innovation marches on. And while these businesses stagnate in a well-intentioned, if misguided, attempt to preserve market share, they often remain unaware of newer, more innovative competitors offering a more digitally sophisticated product or service.

But instead of viewing uncertainty as a liability, what if we recognized it for what it is, an opportunity?

Right now, the world is in recovery from a massive disruption. Vaccines are being rolled out, along with the hope of a return to normalcy in the grips of a pandemic that radically shifted how we live, work, and socialize. During times of change, people are more receptive to new ideas, mindsets, ways of thinking, and doing. When old tried and true methods of doing business are exhausted, the market is forced to consider new possibilities more seriously. 

Now is a particularly opportune time to expand into Asia. Introducing your product to a digitally-savvy market could present development ideas and help you future-proof your product. There’s a rich and growing local talent pool in Hong Kong, where you can quickly find people with skills that are on the forefront of technological advancement. Because companies have become more amenable to remote working situations amid the pandemic, it’s entirely feasible to run your business remotely, while local talent handles sales, forecasting, management, and other basic operations. 

Best of all, there is fantastic ROI potential. The minimum investment is negligible—all that’s required is $2,000 USD to incorporate your business. You might spend a bit more if you wanted to hire full-time or part-time staff and open an office (The current real estate market is optimal—there are plenty of good deals if you want to rent an office in a prime location). But none of this is mandatory. 

Before making the jump, BDA can help you assess this opportunity. First, we conduct market research and compile a competitive analysis on your behalf. From there, we can test market response, generating in-depth reports on the best messaging and approach for maximum market penetration. If your business is a strong candidate for expansion, we register you in the local market and set up your basic operations—including local partnerships and key hires.

As Einstein said, “Nothing happens unless something moves.” When things around you are moving the best thing you can do is move with them—not stand still. Expanding into Asia is a chance to mature your product in a market with digital-savvy residents—and unlock that next level of growth in your business.