Just when we thought the dust might have settled from the disruption of Covid, it comes back and there is a good chance this will be the norm until a vaccine is fully available to the New Zealand public, which maybe towards the end of next year at the very earliest. If we continue to want to beat the virus, we must anticipate the disruption of continued regional bubbles that we are currently experiencing.
Most companies are facing a similar predicament from Covid disruption with a lack of momentum and cash depletion due to the stop start nature of the past few months. Without mass stimulation by the Government our economy would have been seriously damaged and still many business sectors day to day survival is on a knife’s edge.
What do we do in times of immense change to secure the future of a successful company or a project that is in place..?? We know that government intervention can’t go on forever and right now businesses have to make sound decisions to help them travel down the road to a positive future.
It’s a difficult problem to grapple when the impact is so big and the change in the economy not only affects small companies, it affects the large ones as well. However, there are 6 big things I suggest that should be considered:
- It’s important to develop a plan with milestones to show progress or the lack of progress. Within the mile stones there needs to be a set of activities that should take place to meet these goals. It’s important to create a business road map to see the big picture rather than only focusing on the now with no peripheral vision.
- Are you charging enough for your products and services..?? Covid comes at a cost and customers realise this aspect. You can’t absorb all these new costs without increasing your prices.
- Look closely at your fixed and variable costs. Can you negotiate some of your fixed costs down and what variable costs can be reduced but still create profit in the short term.
- Your customers will change during this economic slow-down. There may be less customers and some may not be able to pay as promptly as they did before Covid. You must understand your potential exposure. A large percent of companies that fail have been pulled down by their customers inability to pay outstanding invoices.
- Don’t take your eyes off the future. If budget is available ensure marketing and product development continues. The economy is in the beginning of the next economic cycle and the opportunities taken now will yield as the cycle peaks.
- If the company does not produce the expected result don’t go down with the ship. Its best to cut your losses early rather than going through the pain of being cut by a thousand knives. Other opportunities will materialise and it will be financial better to fall back and regroup than sink with a poor performing entity or business project.
It’s important to surround yourself with trusted colleagues, family, professional advice and friends you can trust. Speak honestly and openly to them. A problem shared is a problem halved and with sound logic, hard work, planning and an eye to the future both you, your business and the company you work for will survive and thrive as the cycle moves past this phase and onto future opportunities.
