Surviving the Pandemic in Business –
Staying Afloat Now and Prospering After It
Cash is KING!!
For Businesses, cash is everything right now, and there are several places where you can look for cash in your business: price, volume, cost of goods sold (COGS), overheads, accounts receivable, inventory, and accounts payable. It is crucial that you work out -given your current revenue and funding (equity + debt) availability- your scenarios and establish a plan to move ahead to optimize cash. IF you do not know where you are at, the following is not going to work out.
On one case we have recommended to clients to take a position of revenue restricted spending. Once we have optimized the expenses and are on top of your cash position, you have limited yourself on spending and this will generate revenue– now and in the future.
Currently, revenue is about generating leads and retaining clients. To do both a company needs a customer relationship management plan or platform. Basically, load all your customer information, you do not have to spend crazy money on expensive software, excel works fine. If you don’t have visibility of your pipeline of clients, you are operating blindly. Pipeline, ultimately, makes every business thrive.
First, plan your strategy; think about how your customers are doing. Empathy for your customers right now will go a long way. Help them with a service or product that they need, regardless of whether you will make money or not. Your support in these difficult times will go a long way in retaining them for life. Engaging clients through knowledge sharing, thoughtful ideas, and proactive support will build a strong, long-lasting relationship.
Innovation and Growth
The other aspect of the pipeline is growth. Can you increase customer of client’s growth, meaning, can you increase how much they spend with you over time, and can you create new leads for your business? There are a range of marketing venues that will cost you money, focus on YOU as the best seller for your business. You can use the time to optimize your owned media, such as social media, newsletter, blogs, or to even start new content channels like zoom parties and virtual contests.
For the future, focus on business model innovation. If your business has taken a beating given the sector that you are in, is it possible to innovate out of this crisis? Primarily, there are three levels of innovation: incremental, sustaining, and disruptive. Before elaborating on the innovation, are you clear about your business’ purpose?
Incremental innovation can be something as small as using what you currently have as products and services and focusing on sectors that are doing well during this time. A range of essential services like healthcare, e-commerce, gaming, telecom networks, construction, self-help and so on, are thriving right now. Do you sell something already that these sectors need from you? A good example is how restaurants are currently offering “boxed meals to go” to many. When you cannot make it to your exclusive dining experience, it comes to you with a prep meals and specific restaurant ambiance, such as candlelight dinner, centerpieces and ensembles. A variety of party options to set up events of 10 at your home or business. For example, if you want a candlelight anniversary dinner from a pricey North End restaurant, we can set up a package for “Ristorante X” to come to you!!!
Sustaining innovation is like adding a product or a service that complements what you do but is not part of your offering right now. This is where you pivot your business towards serving a market need that you see, that you know how to deliver, and that you will need to make business changes and survive both short term and possibly long term. For example, a short term offering of free dessert to meet the need of your competitor down the road, can or cannot be a “forever offering”. It is considered a sustainable gesture to maintain your customer base and or attract more customers for now.
Disruptive innovation is what most people refer to when they mention innovation. Such innovation usually turns your business upside down. What can you do today that will kill your own business model? This is a much more bitter economic pill, but there has never been a better time to do it. The opportunities for disruption often don’t just hurt your business but disrupt the market overall with a completely new product service.
Lastly, not all innovation is precise– often, it is innovation of your business model. Strive to make a meaningful impact on the industry or sector you are in. While undercutting a competitor’s price, is a trick that could result in a quick sale or win, that’s not exactly the best acquisition for you.
Flexibility, in taking, tweaking and tailor a proposal until it fits our prospective client’s specific needs like a well-worn glove. Nurturing this approach to business has helped many businesses thrive.
As a small business owner, keeping your company ticking needs to be your primary concern. At a formative stage, keeping yourself open to interesting opportunities is critical. While, setting yourself up for a TOP client or TOP account, don’t lose focus on the small and mid-size companies and people that will get you there, eventually. Never lose focus keeps your eye on the prize and never loose focus.
Creativity is a tool you always want to keep in your toolbox. As for why one should do all this: anticipating your client’s needs. You need to think quickly in satisfying them before being asked. This is a win for your business. You want to create a sense of comfort in your client’s or customer’s heart. Like you, they have invested a significant amount of time and resources into their brand. As uncontrolled as being a business owner is, let your client know you have everything under control. Create tangible value in the service you offer them. Obtain a step in their brand’s ladder to bigger and better things. Repeat business and customer loyalty will be your client’s way of thanking you.
In a hyper-competitive industry, it’s survival of the most flexible. Fundamentally, the change is about delivering value. The transformation can also be in the order outlined where once you embark on the journey, through a range of experiments, you reach the outcome you’re after. A considerable part of this will feel like hell until you try a range of experiments and discover some working. Eventually, they become habits that work and adapt businesses to sustain through the crisis times. There are many resources available online that help dive deeper. Contact me with idea’s and brainstorming your business success.
For more insight,
JP Business Solutions Inc
Joanna Picardi