For many business owners, Now is the greatest leadership test, How to Bring Business back on track in an environment filled with uncertainty, where vaccines are yet to reach common households and economies are still reeling!
Being a Startup business owner in COVID times is not easy when still uncertainty prevails. Both Business & HR Functions, need to work hand-in-hand, to understand, withstand the uncertain economic situation, and work together to make the next stages a great success. Many business owners, big or small, are building strategies to sustain by doing cost-cutting as manpower reduction, salary cuts, deferred incentives, and increments.
From a business point of view, in 2020, your business is profitable if you and your team are alive!
However, it is also important to bring the business on track in the coming months of 2021. Every business in this situation must prepare a unique strategy to control the wreck caused by COVID, which is already being done. COVID has brought more problems with very few available solutions.
Focusing on the Organization
As a business owner, having clear goals, focused teams, and rapid decision-making has replaced corporate bureaucracy. As the world begins to move into the post-COVID-19 era, business owners must choose between not going back to basics, but upgrading their methods and strategies that have better risk management. How they rethink their organizations will go a long way in determining their long-term competitive advantage.
Realizing Who you are.
In a crisis such as COVID, the only factor that really matters becomes very clear, very fast. Strategy, roles, personal ownership, external orientation, and leadership that is both supportive and demanding. Any organization that works on a basic social contract between the employee and employer is, we believe, changing fundamentally. According to research, one of the noticeable characteristics of companies that have adapted well is that they have a strong sense of identity. Leaders and employees have a shared sense of purpose and a common performance culture; they know what the company stands for, beyond shareholder value, and how to get things done right.
Re-evaluation of Work Process
Many leaders and business owners are reflecting on how small, nimble teams built in a hurry to deal with the COVID-19 emergency made important decisions faster and better. Businesses, small or big, have learned that a flatter organization that delegates decision-making down to a dynamic network of teams is more effective.
They are rewiring their circuits to make decisions faster, and with much fewer data and certainty than before. In a world where fast beats slow, companies that can institutionalize these forms of speedy and effective decentralization will jump ahead of the competition.
How to grow
The primary question that organizations must answer is important questions about growth and scalability. Three factors that matter the most are, the ability to embed data and analytics in decision making, building learning platforms that support both audience and the institution itself, and learning at scale; and the cultivation of an organizational culture that fosters value creation and innovation. It was recently found out that several businesses across the globe are making the shift from closed systems and one-to-one transactional relationships to digital platforms and networks of mutually beneficial partnerships, that have proved more resilient during the crisis.
What to do to ensure a smooth start of business after lockdown?
One thing is quite clear that there cannot be a thumb rule which can apply to each business as each business is a different entity. Any business must prepare a unique strategy to control the spillage which is already being done. COVID-19 challenged the usual ways of functioning for many organizations, as lockdown also limited resources for everyone. Every business must be in a dilemma on what to do and what not.
Here are some tips to get back on Track fast and simple!
Change of perspective - Think of yourself as a new start-up and prepare a business plan assuming you have NIL receivable/or no realization in the coming months. It is the same as a startup business plan. Do all your research work thoroughly and get on implementation.
No matter what your business is about, do not try to add any new customers on board, as this is the time lot of buyers will switch their suppliers due to pending payments
Increase the receivable days for the new sale- Remember, taking steps to manage, monitor, and improve accounts receivable turnover is key for healthier cash flow. Not only will tracking your turnover help you spot trends in your accounts receivable practices, but you can also use that information to gauge the impact of your practices on your company’s profitability.
Not to borrow the funds being new sales will also be delayed and interest will impact the margins, Try to shrink the exposure and business lines to concentrate on cash business.
Liquidate nonproductive assets- as businesses grow in size there is also a danger that poor management, bad business judgment, or plain fraud may result in a business becoming unviable. In such cases, it is possible for the productivity of the enterprise to be restored at a low cost and without attendant trauma for the stakeholders by providing more capable managerial talent an opportunity to run it.
Reduce Fixed Overheads excluding staff
Perhaps you could declutter your office and find a smaller space to rent, Maybe you can switch locations without sacrificing revenue/productivity. More often than not, commercial/office spaces make up a huge part of your overhead costs. Reevaluate the size and location of your space, and think about whether or not it actually addresses your business’ biggest needs.
Trim Your Team
Employee wages are another major contributing factor to your overall overhead costs. Downsizing is always an option, especially if you’ve found that you can reduce your staff count without impacting morale or productivity. But the best way to trim the cost of employees is by making smarter hiring decisions in the first place—find employees who have a variety of skills and backgrounds, or invest in training and development so that you can fill gaps internally.