Some things are inevitable – the business world will change significantly.
Business owners, directors and managers need to plan now.
There are things that we can anticipate and things we cannot – but we will all need to be prepared for change, both short and long term.
There are the basics to understand that now become a significant part of the options we make available to ourselves.
The basics fall into simple categories:
Cashflow as a function of turnover
– if you do not have a plan that allows you to stay ahead of this, any negative outflows will take your business down quickly.
People as a function of attitude and ability to be able to adapt to change.
This is something most small business owners trust to luck, on the basis that everyone knows each other. In a world where the financial impact of the pandemic will have caused shifts in family finances, it will soon become apparent that the members of your team most likely to withstand these pressures will be the ones most useful in keeping the business going for everyone.
The market forces.
A “nation of shopkeepers” has always been able to respond to variations in market pressures. This will be different. So much so that a business may need to change direction completely to survive the initial recovery period. World finance is going to drive many out of business, mainly those unable to manage cashflow in the short term. The disruption to the supply chain your business is in may cause you to relook your whole operation.
The cost of borrowing
and the availability of financial stimulation across the world will begin to describe the rate of inflation that will come and go as everything begins to stabilise.
always at the centre of challenges for business will become key to the future of every business but aimed remotely rather than face to face.
Your CUSTOMER will become your most important asset.
Your business plan should take your “customer journey” into account at an early stage. This will depend on all of the above and you preparedness to be able to change to meet their needs (that will give your business the greatest returns).
What can you do today?
- Benchmark your business now – information is king. KNOW where you are now.
- Create your personal review – put it down on paper – WWWWH&W.
- Benchmark the key personnel and the jobs they need to perform “really well” to survive.
- Create a financial plan that lets you view the changes as they happen – make this very visible with key performance date to hand
- Understand your market today – not yesterday as that no longer exists in the same form.
- Understand the state of your financial resilience – how much can you borrow and for how long.
- Create an open ended communications plan to allow key players to input into future success.
Be prepared to ask for help. If your personal view of your business world is too tight you will limit your options.
Change is something many struggle with. It’s mostly a mind game.
You need to become a new world decision maker.