Planning for Future Changes
Navigating through the pandemic of COVID-19 has dramatically impacted businesses large and small. Unfortunately, we are facing challenging situations that are largely out of our control in our personal lives and our businesses.
While it will take some time for things to go back to normal, some restrictions have started to ease up. Reflecting on what you’ve experienced so far in navigating your business during the shutdown, what have you learned? How have you had to adjust your operations or ways you approach your customers? Can you return to your day-to-day operations in the same manner as you previously did or do you have to dramatically change your business?
It is a good time to examine your business in 3 ways, before, during and after the pandemic. Were you able to successfully navigate your business during the height of the shutdown? Are you prepared for a potential return of COVID-19, or if another unforeseen circumstance occurs that could interrupt your business?
Planning for possible future changes is extremely important in order to weather any potential issues your business may face in the future. Let’s take a look at some areas of your business that need to be reviewed in order to navigate moving forward.
Just as you’ve had to make adjustments in the operations of your business during this time, so too have your customers and vendors.
Your customers have been affected in many ways. They may have evaluated how they spend their money, what they value in companies that they buy from and in how they now work and live. How will their responses affect your business? Will they stay with you, leave you for another company or not spend their money for your type of products or service? Do you need to adapt your business to this new set of buying habits of your customer?
Your vendors will have felt the changes as well. As a business themselves, they are most likely going through the same challenges as you may be experiencing. Perhaps their inventory which you order from is limited as they are mindful of their cash flow. They may be working with a limited staff and cannot fulfill orders in a timely manner. Were your vendors able to weather this unusual time? Some businesses may be not be able to stay afloat and are forced to close their doors. Do you have other vendors for the same or similar products?
Take the time to review the behaviors of both your customers and your vendors. Notice the changes, look for possible ways in which to adapt to them and plan for any future changes that may occur and how your company might respond to the changes.
Protecting your overall business is critical, especially during these challenging times. Every company needs to be properly insured to protect all the hard work that went into creating and growing your business. Comprehensive business insurance should be established to focus on each aspect of your company, to move it forward and make it successful.
This type of coverage provides a safeguard for unexpected events. Additionally, a full comprehensive protection plan can provide Business Interruption cover and loss of income. Should you need to temporarily close your doors due to an event covered by your policy, this cover will ensure you still have a business when it is over.
BizCover has access to a network of insurance companies and can quickly provide you free, multiple quotes so you can compare policies without the need to ring around or visit multiple websites. Within minutes you will have options to choose from and can obtain coverage immediately. Get your online quote now!
Obtaining several quotes from different insurance companies will allow you to see not only the different coverage levels but also the cost of each policy. BizCover can make this process easier and faster.
Updated Business Plan
You have probably had to re-think your business moving forward. Do you still want to aim for the core objectives for your company? Is your company still operating in the same manner as it did before the lock down? What, changes did you need to make in order to keep your business operational? Do you like the changes you have made?
Additional questions to ask yourself include:
- Is this still the type of company you want to maintain into the future?
- Are you still enjoying your company?
- Do you have enough staff, and if so, are the right people in the right positions to enable you to successfully grow your business?
Once you have had a chance to consider these questions and can answer these questions, update your business plan and get it all on paper.
Cash Flow Analysis
It is especially important to get a solid understanding of what your company’s cash flow looks like on a monthly basis. Both incoming and outcoming cash flow were affected during COVID-19 and may continue for a good amount of time.
Changes in the buying behaviours of your customers and vendors will affect your cash flow status. Analyse your cash flow looking at the best case and worse case scenarios, what you believe is the most likely scenario and what the results of each situation could be. Performing this analysis should give you a clear idea on what the cash outcomes could be given the different circumstances.
Taking the time to review these areas of your business will help you plan for the future of your business. Although it is not known what other changes might be in store for us in the future, making plans for any future changes will put you in a better position to navigate your business though these challenging times.