2020, so far, has seen almost unprecedented use of the word ‘unprecedented’. There’s very little about the ongoing pandemic with which anyone can claim to be familiar; the environment for business has never been more challenging. Some sectors, like hospitality and events, are feeling the strain more than others.
If your business has been affected by corona, then your plans for the long-term might well have been thrown into disarray. Now, it’s about survival – but exactly how can survival be achieved?
Sharpen your Focus
A lull in activity is an opportunity to reassess your priorities. What products and services are no longer deliverable during the pandemic? What projects can be scaled back or abandoned? Similarly, which are the products on which you’ll be relying? Only by being utterly ruthless can you give your business the best possible chance for survival.
Motivate your Staff
The prospect of tough times ahead can produce a range of reactions from your workforce. They might become despondent and gloomy, or they might rise to the occasion. Make sure that every member of your team understands the broader aims of the business, and their part in bringing those aims about.
Talk to Creditors
It’s never easy to open a dialogue with those whom you owe money. But if your cash-flow situation is a cause for concern, then it might be time to pick up the phone and have an honest conversation. Lenders understand the situation, and may be willing to offer relief to businesses who are struggling. Extra liquidity might be gotten through a specialised cbils loan scheme, or a Coronavirus Business Interruption Loan Scheme.
For many businesses, payroll represents the largest chunk of operating costs. Cutting staff can be a false economy in these circumstances, as those that remain will need to pick up the slack in order for the business to remain afloat. Overworked staff will be less productive. An alternative option is to cut down overtime and reduce hours. If it means keeping the business afloat, then your staff might be willing to go in this direction.
Diversify the Business
If the realities of the pandemic have caused demand for your core products to slump, then it’s time to examine other avenues which may run adjacent to what you’re already doing. Diversifying in this way may transform a doomed business into a thriving one. Restaurants have already made the transition into becoming takeaways, and it may be that your business can tread a similar path.