Preparing for the future: Post COVID-19
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.
Current predictions are not particularly optimistic for the period post-Covid-19.
The first and last thing that I will say about that in this article is this: There are many realistic scenarios that could pan out over the coming months, some much more positive than others, but if you prepare for the worst you will be well-placed to tackle whatever comes your way. Here goes:
Take a moment to consider and fully absorb what you need to do and then get on and do it.
1. Take charge. The success of your business will depend on you. It is not good enough to hope that things will turn out OK. Take the bull by the horns. Strong leadership is what is required. You can do it.
2. Take stock. This is not about a stock take, though that could be part of it. It is about fully understanding the finances of your business and your ability to weather a storm.
3. Take the initiative. Don't wait. See what can be done now to strengthen your financial position. Work on those financial ratios as well as your cash flow. Pull in debts. Make deals with your creditors. Free up cash. Sell off unwanted or unproductive assets. Increase sales and reduce any unnecessary expenditure.
4. Take aim. Identify and focus on areas of your business that will deliver the best results. Don't waste time now on areas of your business that cannot deliver at this point or on customers that are costing you money and dragging you down. Some may be worth putting on ice and others dropped altogether.
5. Take your marketing in hand. Marketing is not unnecessary expenditure. Done right, it can save your business. Assess what is working and what is not. If it is not working, change it. If you have not used online marketing strategies, now is the time to start. Choose the right advisors. This can depend on your pocket, but satisfy yourself that they know their stuff and that they will more than pay for themselves. Check that they understand your business. How confident are they about the results and how long will it take? With online marketing, you will know quite quickly what is working and what is not.
Understand the strategy and how it is designed to work.
Who are you targeting? Why? Where? How?
How will the customers know about you?
What is the compelling reason (or reasons) to buy from you?
How will that translate into a sale?
Work through any reservations you may have and help them to help you.
6. Take advice. Marketing is not the only area where you may need help. If you are not on top of any critical part of the business or its financial management, don't let things slip before getting help. If you do seek advice from the experts, you will need to have a really good reason not to take that advice.
7. Take the hard decisions. If something is not working and tweaking won't do the trick, change it. Go through your organisation structure and determine if there are roles that need to change. Restructure if required and be prepared to trim down to the bare essentials if necessary. Make sure you understand your legal obligations.
Your reasons must be genuine and your process fair. Stay on top of things and keep reassessing your position and your prospects. The hardest decision of all may be to pack it in, but be realistic. If the writing is clearly on the wall, act fast and minimise your loss.
8. Take a back seat only to the extent of empowering your staff to do what they do best. They must be able to use their discretion in all areas where this is required, according to their level of accountability.
9. Take note. Empowering others does not mean abrogating your responsibility. Monitor how things are going at every stage at a level that tells you whether objectives and targets are being met. Know what questions to ask and make sure that your team knows them too. These will be based on key performance indicators. Good reporting and communication is key to your success. Keep an open door and create a culture that encourages sharing of concerns and ideas. You need to keep on top of things.
10. Take care of yourself and your team, whatever that may mean or involve in your context. A key aspect of leadership is motivation and keep that front of mind, especially when things are tough and frustrating. Stay positive and (did anyone mention?) be kind!
Take time out whenever you can to do something you thoroughly enjoy with those who make you laugh and feel better.
11. Take heart if something doesn't go your way. It will not be long before things get better and New Zealand is placing itself in a good position to benefit when they do. Be flexible and willing to keep trying something new, always taking costs and available resources into account.
12. Take pleasure in each success and help those around you to do the same.
For everything there is a season and a time for every purpose under Heaven.
A time to take and a time to give back.
May you be in a position to do so when the dust has cleared.
FBA Editor
The first and last thing that I will say about that in this article is this: There are many realistic scenarios that could pan out over the coming months, some much more positive than others, but if you prepare for the worst you will be well-placed to tackle whatever comes your way. Here goes…