FACT: The entire globe has never experienced the mass enormity that has completely surged through and ripped apart business on both local and international scales in every sector, unlike ever-before witnessed within the 21st century.
It is obvious that all economies are in absolute disarray and turmoil which has been, and continues to be presented to us as a nation with uncertain times. All this making it for interesting conversations, some to which we could never have foreseen nor projected, yet imperative for business owners to participate in as to what lies NEXT!
- What do leader-owners of businesses do in times like these?
- Who do they turn to for direction and understanding?
- How do they respond and act?
To be honest, I know I don’t have all the answers nor do have I experience in such a turmoil & fragile market. A 1968 birth year doesn’t provide me such experience, to which I am also grateful for.
Therefore, like most business owners (Average age 48 years – 2016 Census Australia Bureau of Statistics), your knowledge and experience will be similar.
However, as humans we would have all suffered loss, a loss of a family member or close friend, the loss of money on an investment, or the loss of monies from a bad business decision. Myself, all 3, yet through such devastation I still stand here, I am present with oxygen in my lungs, a fight in my soul, and a vision beyond the ripple effects of such destruction. Big picture, the world as always still continues to rotate on its axis, and my business still operates.
Fast forward, the moral of the story inevitably is that every being shall be affected directly or indirectly with COVID-19. The chaos whilst spiralling out of control shall in time slow down and eventually pass, leaving the world behind to continue moving forward.
Leadership is all about making Smart Decisions! Thus, how does one make smart decisions in a never-experienced epidemic?
Following a process is the starting point leading us to the solution.
Business growth and profitability comes from leaders making sure their business activities follow a regimented process. Strategic planning, business growth, free cashflow and managing people, all require structure, systems and processes in place to be successful. In this current episode of turmoil the above has no other choice, other than that of implementation being applied at every level.
VISION AND LEADERSHIP
Right now, it is time to assess the strength of your vision for your business and ask is it still relevant, or I have just received a massive wake-up call and need to create a more robust vision.
Long term visions are based on sustainability and have been built with market movements in mind, thus whilst this current economic situation looks uncertain, in the long run your vision is still no doubt achievable.
For those that have encountered their wake-up call, the grueling facts presented to you is that you don’t have a vision!
If you do, could it possibly be so ridged that this massive change will see you blow out?
Take Kodak for an example. They had a grand vision but were so attached to film that when the market changed, they simply were not ready, which completely blew them out of the industry.
However, on the opposite spectrum, Apple has continued to move forward with the market thus evolving so much that’s it’s hard to believe they produced computers from a garage.
Here is a recent example of when I speak about the flexibility of VISION.
Tesla, one of the world leading vehicle innovators immediately pivoted from making cars to making respirators and other medical equipment. YET, their vision was so intact and solidified that this allowed them to transform into more than just a vehicle company!
How sound and loud is your vision RIGHT NOW?
Assuming your vision is still solid and can move with the current market, then here’s how you can make smart decisions about sustaining your business in this turmoil economy:
1. Business Fuel – FREE CASH
Cash is the real measure of a successful business and free cash is a topic we focus on heavily with our clients, meaning they have cash reserves for contingencies! This is created by focused planning and a resilient execution of activities. Therefore, protect your cash and do yourself a favour by undertaking a future cash projection right now. This should include a minimum period of 6 months, assisting you to make smart decisions about supporting employees and suppliers. 2. Acceleration Delta – MEASURE BUSINESS PERFORMANCE
2. Acceleration Delta – MEASURE BUSINESS PERFORMANCE
Secondly or maybe for most it’s really should be first, as it will help with cash projections. Compile an activity-based forecast. Growing businesses have a large pipeline of marketing, leads and sales. They also measure these activities to have a very clear and precise understanding as to what is in production. Preparing an activity forecast of what’s coming up or possibly what may be cancelled or postponed provides and exact measure of the impact on business production which the allows for a more informed cash projection. Accurate and timely data will provide valuable information for making smarter decisions about your business now and help you understand more how to complete the next topic.
3. Business Model Review
In these times, as Tesla have done, a tweak or change in business model is paramount to success. Every economist is mentioning the same thing “business will not look the same or even act the same after this epidemic is over”.
As a matter of priority, take your management team aside to review your business model, brainstorm ideas on other ways to attract, deliver and retain value. See our website and previous articles on the following:
- Pricing Power – REVENUE MODEL, pricing to retain value and get paid quicker.
- Control Panel – DIFFERENTIATED SOLUTION, how can you attract more customers or broader revenue streams or higher returns per customer.
- The Customer Grid – SEGMENTATION STRATEGIES, review what you offer and who you offer it to.
Our world is in critical turmoil. What decisions have you implemented that will lead your business through past this crisis?
Seeking outside perspectives allows successful business owners to discover broader and smarter ways of driving forward.