The Covid-19 pandemic has wreaked havoc on the economy and left economic devastation in its wake. Actions taken will continue to determine which businesses thrive. Having a business game plan is an integral part of post-Covid success.
The initial reaction to a business crisis is one of shock. Many business owners are totally paralyzed by the upheaval taking place and take little action to react to what is happening around them. Once that passes, many of those individuals move toward an overreaction in the wrong direction and set themselves up for long-term failure without realizing it. The key to surviving is to take decisive action and steps in the right direction by properly evaluating every aspect of your business.
Here are some things to consider for your post-Covid business game plan:
- Think about normal. When we go back to normal…. the definition of “normal” may look very different than before Covid-19. Depending on your industry, your business and its customers will be very different, and you need to consider what this means for you. How do you need to change your products and services? Do you need to create new ones? How will you be able to deliver value in the new era?
- Evaluate post-crisis competition. If you are taking action to change…. chances are that your competition is doing the same. If they aren’t, they may not be your competition for long. However, it is important to assess what might happen to your competitors if they survive. Who may be moving into your space? What could they be offering? How can you differentiate yourself?
- Stand out from the crowd. Remember, the best companies have a unique and valuable differentiator that sets them apart from competitors. You always want to be competing on value, never on price. Realizing and addressing your customer’s needs will lead you to the answers you need to develop a solid strategy.
- Pivot your strategy. Determine what things you need to stop doing because they do not fit with the new reality. Holding on to the past will only drain your finances and take away from your new focus. Rip the proverbial band-aid off and trust your analysis. Taking deliberative action means you have looked at the situation from all angles and are making an informed decision.
- Revise the future. Part of your business planning must include forecasts for the next 12 to 24 months. You need to set milestones for yourself and develop metrics to measure your success. If you are not achieving the expected results, you need to further pivot your strategy. Remember, this is not a “set it and forget it” type of activity. Consistently evaluating how you’re doing is critical to ensuring you will achieve the goal.
If you need help developing a post-Covid strategy for your business, Tentho is here to help! Our CFO advisory services are designed to help small and medium-sized businesses stay on track for success. Learn more about our CFO Services or schedule a free consultation to connect with a financial expert today!