Stability is the state of being firm and having the ability to endure external interruptions or forces. Being stable means that you cannot easily be shaken or toppled of solid as you standing on solid grounds or have a stable foundation.
The state of having the firmness to remain unshaken by counter or reaction to external forces is what stability is all about. You can say that a business is stable when it can sustain its activities and still bring in profits. Some companies pick up well when they start up, and as time goes by, they slowly start to deteriorate and soon end up shutting down. A business that can maintain its status in the market or even upgrade is a stable one.
Business is a risky game whereby you invest in a vision hoping that it will work and bring in profit, and every business owner in the world started their businesses to bring profit. However, business is often not a straight path since there are many ups and downs that a business will go through during its operations. Sometimes you will make a profit, and other times you will incur losses. As a business person, you have to live with the fact that it is an unpredictable venture.
It is during hard times that you can decide whether a company is stable or not. They say that how you behave when faced with challenges and struggles shows your true colors. Some businesses will sail through the storm comfortably, while others sink in the deep waters of bankruptcy when faced with challenges. The businesses that survive the tough times can be said to have stability.
Example of stability
Hypothetically speaking, I have a business that started at around the same time as yours. Before starting your business, you had carefully and thoroughly prepared a stable foundation for your business. You have enough capital in the business’s account, don’t have any pending legal issues, and have identified a steady source of raw material and market. On the other hand, my business didn’t have a good enough plan and is more likely to shut down when there is a slight decrease in the market or my products’ price.
My business will struggle when facing challenging economic periods that might befall it in the future due to a solid plan. Let’s say that a few years after the opening of the operations, the demand for my company’s products drastically declines. A scenario like that would be a massive blow to my operations, and my company will incur many losses. Since your company had a backup plan for an overseas market, you will still be selling your products and making even more profit since you will not be facing my company’s competition.
Your business will survive the harsh economic period comfortably due to its stable foundation and plans in this scenario. Since you had already identified a stable market, you would still be selling your products and services without disruptions caused by external factors. The ample amount of capital in your account would cover up any losses incurred. On the other hand, my business would struggle because of the lack of a stable foundation.
Significance of Stability
Stability in a business helps motivate the employees because they know their work can withstand the rough times; therefore, their jobs are not in jeopardy. In an industry where minor issues affect the operations adversely, the employees will always work with the fear of closing down any time. This constant fear affects their mentality, and you cannot compare their work rate with the work rate of an employee working in a stable company. Every business should have a stable foundation in terms of capital, raw materials, legal issues, and market to withstand rough times.
We can therefore conclude that stability in a business is the backbone of all its operations. Without stability, any business can quickly shut down under pressure. In any company, the foundation of the business is solid before proceeding to greater heights. Without stability, a business cannot withstand the pressures that come with it; therefore, it is a critical feature in any business as it shows that it will have a long life span.