5 Essentials for Businesses to Survive COVID-19
May 14, 2020 • Written By Melissa | Halfsquare Designs
Eight weeks into the Pandemic, many businesses are currently closed or operating in some limited capacity. In order to navigate through these unprecedented times, it’s not too early to plan for the new normal.
Here are our 5 essentials to consider to help your business survive and adjust during COVID-19:
Budget
In short, the entire business model is changing and is very different from 2 months ago. Prepare a business plan as if everything is new and review every line of the P&L and balance sheet.
Expect a significant disruption to revenues - as recovery will be very slow in some industries. Some businesses might even be permanently impacted.
Higher marketing costs - many competitors will be looking to recover, and with the unemployment rate much higher than normal, we would expect higher acquisition costs while consumer confidence takes time to rebound. Less employment equals less disposable income equals less dollars to go around.
Consider the extra safety equipment needed for every associate to ensure their safety and to maintain a healthy work environment for everyone.
Scale
Be nimble. The best plans and forecasts might not be correct. There is a human element to COVID-19, and human reactions are not always rational or linear. All you need to reference is the varying opinions on what the recovery plan should be.
Online
If there is one thing that has been highlighted and escalated through COVID-19, its that computer technology is going to play a much more important role in our lives than ever before. Everything from big data analytics to consumer buying behaviour will include some online component. Whether it’s the research and discovery before the purchase or the buying itself. This is a good time to revisit your online presence and immediately make the necessary changes and/or improvements before the operation of restarting business is upon us.
Change
Instead of being prepared for change, we need to EXPECT change. The magnitude of COVID-19 is generational. Even if a vaccine is developed in the near future (cross our fingers), the lasting impact in all our memories will impact our everyday behaviours for years to come. We are not only speaking about buying patterns of customers but also within our own teams and organizations.
Cash is King
And perhaps most importantly, what does the cash flow projections look like for the next few months, paying attention to any new delays in recognizing revenue when we reopen for business. For example - are there any delays in the supply chain that will impede new and outstanding orders. Instinctively as entrepreneurs, we all want to get things “rocking and rolling” again… just don’t lose sight of this important part of the survival process. Don’t forget to take advantage of all government assistance.
Government of Canada - Economic recovery plan
Nobody knows what the “new normal” will look like in a month, 6 months, or a year from now. All we can do is hope for a speedy recovery, and to take the necessary steps and precautions now in order to put ourselves in the best possible position for success in the future.
What steps are you taking to future-proof your business? Do you agree with our 5 essentials? Would you add anything else to the list? Let us know in the comments below!