Wed Aug 26, 2020 | Alan Lefkowitz | Business, Cash Management, CFO Services
Get Your Business Back On The Road To Recovery: 3 Tips
Although the pandemic is not over yet, and many businesses are still shut down or only operating at a limited capacity, it’s essential to start planning now to get your business back up and running in new and changing environments. Here are 3 tips to help your business back on the road to recovery.
Create a New Roadmap
Whether your business had a budget or plan in 2020 may be irrelevant as we head toward the fourth quarter. The pandemic has fundamentally changed most companies with very few exceptions.
Businesses today are increasing their costs for personal protective equipment for employees and customers. Some companies, particularly in the retail space, are dealing with customers and consumers that may be afraid to enter the premises and have resorted to curbside pickup and delivery.
Other companies, particularly those in the construction, architecture/engineering, and professional services, have had to grapple with fewer projects and hourly work with increased costs. At the same time, their business may be shut down or operating at a limited capacity.
Modifying your budget and creating a new plan or revising the initial plan for the rest of this year and 2021 will be fundamental for your business to survive. While this may seem like a complex or damaging proposition, it does not have to be that way. Now is the time for forward-looking creative innovation for your business.
Rethink Your Core Business
Many great companies we know today have changed their core business models over the years for various reasons.
Tiffany & Co. started as a stationary company before becoming the luxury jewelry company most of us know today. Nokia was originally a paper mill before transitioning into the mobile phone and apps industry. Perhaps, the most significant transformation was Amazon, which initially started as an online bookstore and now sells just about everything.
Not only did these businesses have a vision, but more importantly, they were flexible and willing to change with the times. Whether you currently manage or own a large or small business, there is no better time to evaluate your business model. Is it time to restructure part or all of your business? Should staff learn new skills?
Or is it time to double down on your current model, and does that mean investing in your employee’s skills to meet that need?
While we might not have been able to predict this pandemic or its impact just a few months ago, all of us can now take this time to position ourselves professionally and personally for this “new normal.” In addition, this “new normal” of a virtual world may be around for a significant time.
There is no better time than today to start adapting your company and structure for this new way of business and life.
Analyze Your Finances
Now that you have created a post-pandemic plan and determined the skills, training, and direction you would like to see the company go, the final and arguably most crucial component comes down to finances. Some questions you will need to answer include:
- Do you have enough cash reserves?
- Do you plan to take out a loan? If so, do you have financials to present to a bank or lender?
- What are your profit margins per product or service?
- Due to the current business climate, will you have to offer your product or services at a discounted rate?
If you are ready to get your business back on the road to recovery, then contact us today and let us help you get there.