The recovery is coming. Slowly but surely, businesses are trying to get back to normal and focusing on a strong year-end and a better 2021. But before you do, it may be time for a bit of self-reflection. Things have been great for so long, you may have gotten a bit complacent, milking growth and living as usual. But the shock to the system provided by the recent pandemic and lockdowns may be a sign that it’s time to think of your next steps.
Following our last article on some of the technological challenges you may run into during the process of phasing in employees and restarting your business, we would today like to explore some of the ways to clear a path for takeoff.
From managing your current financials to planning for a variety of scenarios over the next 3-6 months to exploring ways you can modify your operations to focus on business transformation, smart decisions early on can go a long way in establishing resiliency at your business. Today, we discuss some of the steps you can take to fortify your business against present and future threats.
Take a Deep Look at Your Business
Hard times create or reward strong business models. It’s a lot harder to see gaps in your business when things are going well. With GDP growth more than 4 percent in the past few years, growth just came naturally. But the past few months presented economic adversity for the first time in a while.
Lessons Learned from Two Decades Back
Think back to the dot-com bubble, a time when internet companies could essentially launch a website, prove growth, and have investors beating on their doors. Especially during the ramp-up, no one really looked at how these companies spent their money. But when reality hit, it hit hard.
But take a look at some of the notable companies at the heart of the bubble, many of these companies had good ideas. While there were a lot of questionable ones, there were also a lot of players before the crash that delivered services you don’t think twice about using today. You could just as easily be watching your favorite gamer streaming on pseudo.com, posting hot takes to theGlobe, holding virtual meetings on Radvision, or connecting with suppliers on Traxex, VerticalNet, or PFSweb.
Part of this boom was built on impressions. Rather than focusing efforts on delivering for customers, improving (or even building) the product, or investing in talent, these companies put more effort into hosting lavish parties to announce the launch.
The crash hit and within months, tech companies either ended up folding, getting acquired for pennies on the dollar, or going under the radar for a while to focus on value. It resulted in the move to agile in the space, and set up a lot of case studies for the last decade of tech companies to learn from.
The Same Goes Today
Even if you’re not in the tech space, the lessons from the dot-com bubble still hold true. Smart, future-proof strategies and good business models are timeless. Being able to understand your business, deliver results, and focus on what improves both is critical.
Forging into a Recovery Starts with a Better Understanding
The challenges presented during the lockdowns have probably put stress on your company. Money may be tight, and it may feel like you’re starting all over again. So where do you begin?
Assess Your Business Model
One of the first steps as you push towards a new business model is to look at how everything about your business works together, determining if you need to make any changes in processes. Start with the key performance indicators that define success and tailor your business around improving specific models.
Not sure where to begin? Check out these guides including Key Performance Indicators for Manufacturing and Key Performance Indicators for Distribution. From here, take steps to establish change management metrics. Is a customer segment looking more lucrative in the next few years? Now is the time to make the pivot to serve them.
Ensure the Financials Are Ready for Anything
One of the hardest parts of the recovery process? No one knows the degree or speed of the bounce back. Business owners sound optimistic, but you can’t assume that. Begin by planning around a few recovery models in the second half of the year, running analyses that include acceleration, slowdowns, and consistent revenue flows.
Depending on how things look at your business, this is also the time to look at funding options. Maybe this includes renegotiating credit agreements, seeking new funding or credit, or finding grants.
Take a Look at Your Revenue Model
Paired with the aforementioned business model analysis, you may also want to look at the way your goods and services are sold and offered. Is there a way to make the money go further? Would a change in pricing model help you spur your recovery? These and other approaches need to be aligned with your business goals and put you in a position to achieve them.
Consider a Technological Update
Whether it’s measuring KPIs, planning and analysis built on a variety of scenarios, or understanding what’s working at your business, the right technology can go a long way in taking you there. Not only does it deliver more powerful analysis, it’s also a switch that might be easier now. People have already spent the last few months changing the way they work around the business, so why not offer a change that will help them do more?
Learn More: Five Companies Who Kept Their Business Running Smoothly
Despite the move from lockdown to reality looking less like flipping the switch and more like accelerating, resilient businesses who turned to the cloud either before or during the lockdown have been reaping the rewards. A recent Acumatica blog discussed how some of the companies who did embrace the cloud made it work.
Ready to learn more about empowering your employees no matter where they stand? Read How 5 Acumatica Customers Keep Business Running Smoothly from Anywhere, download the free IDC report discussing how the cloud enables business resiliency, and contact us for more information.