If there’s one thing that we can take for granted it’s that change is life’s only constant! Yet, the COVID-19 pandemic has still caused a lot of disturbance for businesses around the world, and finding ways to cope with the new normal that is now beginning to emerge is going to present a host of challenges. Coming up with a survival plan is imperative. So, here are a few strategies that you can adopt to ensure your business remains profitable and relevant, despite the current crisis.
Survival Plan Step 1 - Examine Your Situation
The first stage of your survival plan is to know exactly where your business stands. Examine your current business situation. Balance the books, review and update your budgets, and produce a year-to-date financial statement. Look at your accounts receivables again too and evaluate which customers are likely to pay all or some of the amounts that they owe so your business’s collection activities can be properly prioritised. Also, consider any funding sources that could be tapped without penalty that may assist your company in meeting its financial obligations. You may be able to generate cash immediately by selling supplies, equipment or inventory that is no longer required. Alternatively, contacting your landlord and other creditors whenever applicable to talk about possible deferments and modifications could be another useful course of action now. There may even be loan programs or grants offered by private or public bodies to assist companies like yours that have been negatively impacted by the pandemic. Make sure to check those out so you can maximise your financial resources.
Survival Plan Step 2 – Revisit Your Business Model
Once you’ve examined your business situation, you may realise that there are some changes to be made in your business model. Now is the time to look at it again and think about the four Ps – Product, place, promotions, and pricing. You may need to refresh your branding to reflect a different focus, develop an understanding of coronavirus and industry-related regulations, lease provisions and insurance requirements, and take on board the feedback of stakeholders and other professionals to ensure that your business model is up to the challenges that face it in the new normal situation.
Survival Plan Step 3 – Determine All the Details
While you’re creating an action plan for relaunching your business, you need to prioritise tasks then group them across a timeline in stages. Think about which resources you have, which resources you need, and the timescale within which you need them. Next, develop a forecast of revenue and expenses on a monthly basis to show what you believe cash flow is likely to look like over the next year once your revised and revisited business model is in place. With these projections, you’ll be able to determine whether any outside finance is required, and which communications and marketing metrics and tactics are most likely to aid your success.
Follow these three survival plan steps and your business will be well-set to cope with the challenges that the new normal is likely to present over the next few weeks and months.