In these uncertain times, you need to create certainty and control the controllable.
Are you are Business Owner, Business Leader or Business Consultant who is wondering how to handle this current crisis.
If you decide to sit on your hands, and wait for things to change, Businesses are going to be too late, and there unfortunately will be a lot of businesses that will not make it through this.
In this post we will discuss the following 4 keys areas to manage your anti-crisis transformation:
- How to assess your current situation – is this a time to grow, or protect and survival?
- What are the different scenarios and key decisions you need to make,
- An actionable plan and steps to get you there, and
- Communication you need with your team, and customers.
Before you jump into the action mode – the first thing we should agree, is that the 2020 Plan is out the door. The 2020 Plan for 2020 now, is not the same plan you had at the start of year. You need a new plan.
Next, you need to sit down for a bit and assess your current condition. Yes, this crisis has shocked many companies to the core and it is an alarming situation, but panicking or worse – doing nothing at all – are two extremes of the spectrum that you wouldn’t want to find yourself in.
This crisis has shocked many companies to the core and it is an alarming situation, but panicking or worse - doing nothing at all - are two extremes of the spectrum that you wouldn’t want to find yourself in.
If we look back at recent history, this crisis draws similarities to the SARS epidemic, which in 2003 reported to have caused more than 8000 deaths. That particular pandemic lasted for a good 9 months, and Covid-19 today has already infecting an estimated ten times more people in a much shorter time span. The estimated global economic loss from SARS was estimated at 40 US billion dollars, and according to those calculations, Covid-19 is anticipated to cause 3 or 4 times the damage – which will be HUGE.
Speaking of the economy, stock markets have already seen a huge hit. This does not mean that we are moving towards a recession, since stock markets cannot (not yet anyway) unveil consumer spending or retail statistics. Surprisingly enough, e-commerce sales have gone up by 25% – especially in the grocery, health, general and pet niche markets.
On the other hand, the clothing, sports and automotive sector are watching their sales go down faster than ever. After all, who would need a new outfit when working from home? There is a catch here, though – the apparel companies providing sweat pants and comfortable clothing are experiencing a stark rise in sales. This goes without saying that the demand for festive clothing and swimsuits is at an all-time low. Wondering how to cope with the declining sales? (Read on to find out!)
Apart from that, the electronic sector sales in personal computers, laptops and other home electronics are rising significantly. Needless to say, no one is even talking about portable accessories – let alone purchasing them.
All these findings indicate one thing – people are now adjusting to the new work model – WFH ( and rightly so, we wrote about this in a previous post here) and the e-commerce sector (online shopping) will continue to rise long after the pandemic has come to an end.
If you are currently trading in these consumer goods, then you might be good to go FOR NOW – but then comes the real question – will it be sustainable later on? The answer is a blunt NO.
If you really want to come out of this crisis like a true hero, you must prepare for what awaits. Once people have stocked up on these goods and the quarantine period comes to an end, there will be a natural decline in your sales. So, what have you done to counter the situation? Have you made a plan yet?
Ask yourself: are the goods that you’re selling right now going to remain relevant after the pandemic is over? Will they still be valuable enough for the consumers to buy? If yes, then Kudos to you! If not, it’s time to get busy!
Remember, there is no need to overreact or under react. Though the predictions have been shocking, the economy will experience a rebound and rise back up by the end of the year.
1. Assessing Your Current Situation
First thing’s first, assess your business’s current situation before you move forward. Wondering how to do that? Step back and take a look at the bigger picture – read the below-mentioned information and rank yourself accordingly:
- If your sales have not been impacted enough for you to notice– this means you’re doing good.
- If your business has experienced a moderate impact – it means you’re having a tough time.
- If your business has seen a severe impact and your ability to continue your operations is encountering an immediate threat – you are facing a crisis.
2. Key Decisions You Need to Make
If you are in for good times – we are more than happy to hear this! You do however need to remain focused on growing more as the situation will be somewhat uncertain in the coming months.
Most businesses today fall into the tough times category. However, there is no need to panic, as you have ample time to figure things out! Right now is the best time to save your assets, which include cash, clients, traffic, goods, inventory, skills, content, teams, and all sorts of receivables.
Right now is the best time to save your assets, which include cash, clients, traffic, goods, inventory, skills, content, teams, and all sorts of receivables.
If you are in for good times – we are more than happy to hear this! You do however need to remain focused on growing more as the situation will be somewhat uncertain in the coming months.
Most businesses today fall into the tough times category. However, there is no need to panic, as you have ample time to figure things out! Right now is the best time to save your assets, which include cash, clients, traffic, goods, inventory, skills, content, teams, and all sorts of receivables.
Remember to not give up on your assets and make sure they don’t decay so much so that when we come out of this, your business is no longer relevant or strong enough to compete.
Meanwhile, you can also improvise by restructuring your business or revamping your offerings. This way you have a better chance of emerging as a winner once the storm is over!
If you are in your tough times – you first need to know that you are not the only one going through the crisis. Chances are you need to make some swift decisions to save your resources. First off, you need to cut down on your expenses – which means you will be employing the Work From Home (WFM) model moving forward. This will cut down a major percentage of your costs. Secondly, if you are operating manually, changing up your business strategy and going digital is the way forward. Move your business online and look into ecommerce possibilities. Lastly, you can also look into Small Business loans or government packages to keep things moving.
3. The Action Plan
Now comes the most crucial part – the action plan. After all the mind mapping/situation assessing is done, you need to carve out a an ‘actionable’ plan that will help you survive.
Whether you own a million dollar corporation or an Small-to-Medium Enterprise (SME), you need to focus on a proactive approach if you want to pull through. Covid-19 is just one example, who knows what is in store for us ahead. Therefore, knowing how to deal with a crisis and taking proactive measures will ensure you do not fall prey to such uncertain conditions.
Here is how you can develop an appropriate action plan:
Mark Down Your Assets
Write down all your assets on a paper and highlight three (3) that are the most important.
Brainstorm Ideas
Write down some innovative ideas on how you can rescue those assets and grow your business. Do all the research you need and come up with practical designs. If costs are an issue, you could go entirely digital (hint: no need to pay for rent, office supplies, etc.). If your festive clothing is not in demand, create something relevant – go for casual wear!Your institute is closing up? Opt for e-learning courses!
Line Up Your Resources
Are you short on cash? Or do you lack the mental or emotional capacity to compete like you did before? Give yourself time, and space out your activities – decide what you want to achieve today, next week and next month in terms of the protection and allocation of your resources. Create a survival strategy if you need to.
Share With an Expert
Share your action plan with an expert – this could be your friend, partner, a tech-consultancy firm – literally anyone who can help you achieve your goals and propel your business forward in these uncertain times. An expert can give you valuable insights on how you can boost things up for your business. My upcoming webinar series has plenty of key findings from industry experts on how to cope with the crisis – so make sure you don’t miss out!
Avoid these two (2) Pitfalls
People tend to become overwhelmed and stop their operations entirely, which is wrong. You can’t just give up on your dream – something you’ve taken years to build. Take some time off and get back up. Identify what you need to keep the lights on, the business going and keep those.
Secondly, make sure you do not cut down too much on your resources. Most people cut sales and marketing, which is the exact thing that will get your out of this, sales. Don’t completely cut this (we go in to detail in the webinar series). Remember, you just need to eliminate the excess expenditure. By going too deep, you’re only limiting your ability to thrive in the long run.
If you are in the consumer-focused market, the best strategy is to plan for the worst yet still hope for the best. Though you can’t predict how long the crisis will last, but you can prepare yourselves and rescue your assets by altering your business strategy and going into the survival mode.
4. Communication
Lastly, make sure to keep your team and the consumers informed! Communicating with your customers and employees is essential during times like these. Explain to your employees the new changes you’re about to make and their roles, and reassure them that they are still a part of your organization. Use apps like Zoom, Asana, Trello and Calendly to keep track of the meetings and work progress. Reach out to your customers and start marketing your products digitally through ads and other digital media.
Though communication can be challenging in such environments, keep in mind that businesses that communicate effectively earn the trust of their employees, perform better and only become stronger with time.
We know that most business owners are on the verge of breaking down right now and need all the help they can get in crafting a strong action plan for their business, which is exactly why we created this informative webinar series – the Anti-Crisis Transformation Accelerator. We cover practical insights that will help you get back on track, recover your sales and salvage your business, along with the inspiration you need to beat this epidemic! Click here to get enrolled now!
Thank you for reading this, hope you found a lot of value in it!
Sincerely,
Heath Gascoigne
P.S. If you want to join our Business Transformator community of like-minded Business Transformators, join the community on the Business Transformator Facebook Group here.
P.P.S. If you want to learn more about business transformation, check out The Business Transformation Playbook here.
For more information, visit https://www.hoba.tech
