The economic impact of the pandemic is clearly etched as a tale of two halves. Some businesses are now lost forever; many of them work overtime and refit themselves to remain relevant to their customers. It is important to have a flexible business plan.
Businesses have got to make sharp pivots. Retooling services, altering revenue models almost overnight—what it calls for. And all this when the revenue picture is clear as mud.
High are the stakes, so is the opportunity. Its really important to write a business plan especially those of small business which is flexible. This should include the products and services market analysis, market research, financial statement, product line, target market, competitive advantage, financial information, marketing strategy, cash flow statement, financial projections, balance sheet and most importantly a clearly drafted executive summary.
Only those organizations that will innovate and adapt to the changing consumer expectations will survive. There may be a few things you need to know before you sit down to draw up a new business plan for your existing business plan.
Understand the Opportunity
Large-scale changes in consumer behaviour, as accelerated by the lockdown, reshaped dramatically food, retail, and consumer goods, among many other service industries. What is important here is to understand the drivers behind this kind of change and to map your way on how you can serve the new needs of your customers.
First, know areas in your current business that require change in long term. Secondly, identify small changes, such as the inclusion of a new channel for customer support, that can realize quick wins. Last in the list is the need to check whether your business needs diversification or requires another model of revenues to grow further.
Be aware of your cash flow:
Cash is king. We all have heard it before, but few of us really get it. Till now. With revenue growth uncertain, staying on top of receivables and payables is more critical than ever.
Invest in customer service or add a sales channel – all good, but can bump up costs. Be certain to maintain a razor-sharp focus on liquidity; it will help you pay bills and salaries on time. It will arm you with the wherewithal needed to leverage new market opportunities.
Refinance debt. Look for alternate funding.
This could also be an excellent opportunity to reassess your capital needs for a longer term. With the interest rate cuts recently seen, which brought down the cost of borrowing to historic lows, it is also a good time to refinance your debt to avoid unnecessary interest costs.
We would suggest that you meet with your bank to discuss ways of improving capital and reducing interest expense, including setting up revolving credit facilities and increasing overdraft facilities. Other funding sources you may want to consider are dependent on your circumstances—other funding sources available include crowdfunding or mezzanine debt, though mezzanine debt is not for everyone.
We’re all digital now
The pandemic has crushed the notion that a business is too small to go digital. Success in businesses today depends on how well you can continue serving clients even when it is not business as usual. We will help you set up a startup business plan that is essential.
If not already done, think about going all digital and moving your business networks to a cloud. More specifically, digital transformation is going to make your business agile, reduce it in cost, and create further opportunities for the optimization of your business down the road.
You’ve got them in a row now, and you’re ready to plan anew. Here’s a helpful guide from SBA to get you up and running.
