Constructive things you can be doing for your business during the Covid-19 lockdown
About the Author:
Paul Wilton (editor)
CA with degrees in commerce, accounting and information technology. Paul worked overseas in the “Big 4” accounting firms and served as a director at Audit New Zealand before setting up his own consultancy. Author of A-Z of New Zealand Business Law, Paul has over 20 years of experience as a business owner and consultant. He joined FBA in 2004 and is totally committed to providing excellence in quality and value to our subscribers.
This article discusses ways in which you can use this time to plan for success in your business.
To this effect we have also compiled a number of articles on Financial Management and Business Strategy under useful links.
For Financial Management click here, for Business Strategy click here.
How often have you felt that you really need a breather; a time to stand back from your business to reassess what you are doing and how you are doing it? This may be your chance.
Get on top of the current situation, then take a good look at the long term.
Short term
Work backwards from your customers and their needs to how you can fulfil them;
Work forwards... Review your short-term and longer-term objectives. Revisit your SWOT analysis, looking at your strengths, weaknesses, opportunities and threats.
If there is absolutely no way that you can continue in the short term to provide your service, look at your finances. How can you save costs? What help is available?
Keep your employees informed of the situation. Brainstorm with them to think of new and different ways of earning an income. Consider online options. Consider offering specials in return for delayed delivery that can only take place after the lockdown period.
Take advantage of the time you have to reach out and connect with suppliers and customers. Check how they are doing and if there is anything you can do to help.
Customers: Let them know what you are able to offer over this period. If you are not going to be operating at all, contact them to find out what their situation is and to explore what they want or would expect from you at this time. They may give you some good ideas. Check if they would be willing to participate in a survey. This can give you useful feedback on how you have been meeting their needs.
Suppliers: Find out their situation and share yours. Explore ideas on how things can be better for both of you. Work through a fair way for creditors to offer you leniency, but realise that they are probably hurting and may need support too. The same applies to your landlord.
Be frank with your employees regarding possible scenarios that could affect them, but assure them of your intentions and do not alarm them unnecessarily.
"When adversity strikes, that's when you have to be the most calm, take a step back, stay strong, stay grounded and press on."
― James Todd Smith, American rapper, known professionally as LL Cool J
Longer term
Assess
Take a look at your performance over the past year. Especially consider the trend. Project this into the future and see how it looks. If this is not good, recognise you need to do something serious about it - and now is the time to focus on that.
Look online at what others are doing in your industry. Don't limit this to New Zealand.
If technology or ... is involved, brush up on your knowledge. Take some time to find the experts in areas that can help you reach new heights, new lines or markets.
Reinvent
The current situation may force you into doing things differently from the way you have always operated. This may prove to be a great opportunity to test things you have never considered in the past, but that you are able to offer your clients and customers.
Plan
Revisit and update your vision, mission, goals, strategy and business plan. If you don't have these, now may be the time to put these in place.
Get on top of your finances
How good is your financial information and reporting? Can this be improved? Work on your cash-flow forecasts and budgeting. Contact your bank. You may need and qualify for the business loan scheme or the mortgage holiday (but don't take this unless you need it, as the interest will pile up and be added to your loan, being an expensive option in the long term).
Reach out
We have mentioned this above in regard to existing customers, but also work on developing leads and reach out to them. You will want to support suppliers at this time, but look to see what other options are available, especially if you have not been entirely happy with suppliers in the past.
Catch up
Are you behind in admin, filing, correspondence...
Reading there is so much available online. If you have a Kindle or Kobo, notebook or even your computer, you can download material to conduct research, brush up on specifics, become motivated...
Communicate, communicate, communicate...
There is no substitute for good communication with your team... Similarly, everyone you contact will appreciate it, as long as you are genuinely concerned about their welfare and show it.
In summary
Cape diem! seize the moment. Be motivated. However dreadful the current situation is (and it is), there may just be a chance that it gives you the time you need to get back on track. When the dust settles, many things will not be the same again. Let's work on making them better.
“And once the storm is over, you won’t remember how you made it through, how you managed to survive. You won’t even be sure, whether the storm is really over. But one thing is certain. When you come out of the storm, you won’t be the same person who walked in. That’s what this storm’s all about.”
― Haruki Murakami, International best-selling Japanese writer.
For more information on Financial Management click here, and for for Business Strategy click here.
FBA Editor
P.S. Feel free to share your ideas and successes with us so that others may benefit and be inspired.
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