Invoke your Business Continuity Plan Now! Execute Immediate actions you can take to ensure business continues. The coronavirus pandemic is broadly affecting businesses globally. Here are a few easy to execute strategies to skyrocket your business continuity plan.
Cash Burn Rate Is Paramount
We suggest you question every assumption about your business, including cash burn out. Do you really have as much cash as you think? to survive as a business. Could you withstand a few poor quarters if the economy sputters? Have you made contingency plans? Where could you trim expenses without fundamentally hurting the business?
There Is a New Reality
Businesses hoping to get around imminently, praying this goes away soon and thinking the world will be the same need to realize there is a new reality. Companies must reduce their cash burn immediately, adjust customer expectations, and identify new opportunities that will emerge. This is a time to stop and think about what is next and what significant opportunities will exist. Entrepreneurs who can escape the noise and capitalize on the needs of a new world order will build great companies.
New Opportunities to Shine
Your company may be uniquely positioned to step up during this challenging time. There is so much that is still unknown, so be vigilant about assessing the market as circumstances unfold. Run hard at opportunities that may emerge and be ready to adapt your product to meet evolving demands. Use these openings to not only drive incremental growth, but to reinforce your brand and reputation.
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Engage your Network
In an environment like this, it’s critical to maintain strong relationships with your key customers, partners, and employees. Have a thoughtful plan of engagement for each of these key stakeholder groups. It’s never more important than in times of crisis for your partners to feel like you have their back and are there to support them. Investing in this now creatively and with authentic engagement and energy will pay enormous dividends in the future.
Be Proactive
A proactive approach is ideal and it will feel uncomfortable. As a business validate your business continuity plan and be realistic with your monetization strategies and business model with regard to future expectations. Expect delays in payments, supply-chain, fundraising and lower valuations. Be mindful of how the downturn may create silver linings. Remain clear-eyed, risk aware, yet optimistic.
Freeze and Reevaluate Deals
Hope for the best but plan for the worst. All new business activity and fundraising are probably in the process of freezing up. If you’re in the midst of a financing process, stop negotiating and close. If you’re embarking on a new business deal process, consider whether you can pull back and wait and/or be prepared to take a suboptimal deal. In the face of a large decision involving a new investment or major new initiative, reevaluate the deal to the new world order in terms of business.
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Realistic expectations in M&A
This downturn will affect our business continuity for all of us, big and small. As a result, traditional acquirers will be less open to mergers & acquisitions and if they do they will look more carefully at the cost you will represent to the acquirer. Of course, if you are profitable, you will be in better shape. Good companies will always get bought and smart acquirers will always be there. However, founders need to still build strong relationships with acquirers and be realistic about valuation expectations.
Be Ready to Change
Businesses that create enduring value typically excel at adopting change and discontinuing what no longer adds value. Be ready to make changes in cost structure that will least damage your strengths and will hone your value proposition down to what customers really value. Comb through your cost structure to create a contingency plan for what you would cut. Identify what’s inefficient; what’s nice to have but dispensable; what may have worked in the past but doesn’t anymore; and what isn’t creating value as it used to. Be ready to change to a new beginning.
Execute your Business Contingency Plan Now
“A good plan violently executed right now, is far better than a perfect plan executed next week.”
– George Patton
In other words, cut hard and do it now. Time is not a friend to any of us. For all of the businesses out there small, self-employed, venture capital-backed startups, big corporate organizations; There will be huge opportunities on the backside of the ongoing meltdown, but your company must still be alive at that point to be a beneficiary. so take care and execute your business contingency plan now.
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