There’s probably not a small business in the country who hasn’t had to pivot somewhat as a result of COVID-19. In fact, the pandemic has been called the biggest economic disruption for small business in a generation. Whether it’s moving services online, trying to navigate ever-changing government restrictions and support packages, all of a sudden making facemasks, or all of the above - it’s little wonder many small business owners feel as if they’ve been holding on for dear life since March. Are you one of them?
In what has been, dare we say, an ‘unprecedented’ year, many small business owners have shown extraordinary resilience, grit, vision, and determination. However, when you have been in survival mode playing business ‘whack-a-mole’ for the better part of a year, it can be easy to remain stuck in that mindset, and lose sight of the future. With 37 percent of Aussie small businesses saying that ongoing viability is a major concern, and the pandemic not yet in the rear-view mirror, it’s time for some hard questions. To ensure that you are ready to move through into the phases of recovery and growth, here are eight questions to be asking so that you get the answers you need to build back better.
1. What do the numbers say?
You’ve probably had your accountant, CFO, or bookkeeper on speed dial the past few months, and they will likely continue to be in the months to come. Before you tackle the next quarter, and position yourself for the quarters after that, you need to make sure you have a few things in place. A clear cash flow forecast, a view of when any debts or liabilities are payable, any unnecessary spending you could cut, and a recast of your budget to reflect your best analysis of this new ‘business as usual’. That way you can make an informed decision about whether to press on, pivot again, or wind things up and move on with your next opportunity. Numbers don’t lie, but they can tell a story. So, what story are your numbers telling you?
2. What have you learned about yourself during this time?
It’s sometimes said that if you want to know who you truly are, go into business for yourself. Running a small business is coming face to face with the
good, the bad, and possibly a little ugly, with the past six months putting all that into overdrive. So, what have you learned about yourself during
this period? Is it that you are most effective when your back is against the wall, or that your creativity is stifled under pressure? Is it that you
love the thrill of testing new products, or that you struggle to let go of the way you were doing things? After six months of living this reality,
it’s time to take stock and reflect on what you’ve learned about yourself and make a plan for what to do with those learnings going forward.
3. What have you learned about the people you serve?
For many of us that run small businesses, when asked what we do it for, it’s because we want to be of value and service to people and provide a product,
service, or experience that improves their lives. For us at BASic Bookkeepers, it’s taking care of the books so that you don’t have to. For you, it
might be making caffeinated beverages to help others power through their day, or providing IT support so that their operations run smoothly. Whatever
it is, take a moment to reflect on what you’ve learned about your customers during the pandemic so far.
Do they love being kept informed? Do they buy in bulk, or prefer to purchase one at a time? Are they great sources of referral or repeat business? Are
they more interested in why you do what you do, as opposed to the ‘what’ or the product and service you provide? Now might be the time to work on some simple but compelling offers to win back loyal clients and bring some buzz and momentum to your business. As you reopen, keep an eye on the changing needs of your customers and be open to further adapting
your business.
4. What’s worked well and needs to stay?
Take a look at the parts of your business that have stood up well in the pandemic pressure cooker and make a plan to keep doing more of it. Perhaps it’s
a new tech platform you’re using, working remotely or from home, or even the news sources or platforms you’ve used to stay on top of the latest
information - make a list of what’s worked well over the past six months and how you’re going to embed it into your business plans going forward.
5. What’s not worked so well and needs to resume or return?
Now, take a look at what’s combusted in the pandemic pressure cooker. Perhaps a system or process kept falling over, a certain product or service line
had no demand, or perhaps being locked into a long-term lease on office space meant you couldn’t keep your overheads low during this period. Or perhaps you and your team need the camaraderie and energy created when
you all work together face-to-face, and you want to make that happen as soon as it’s safe to do so. Whatever has not worked so well for your business
during this time, it’s time to usher in its twilight period so that you can focus more on what’s working well and do more of it.
6. What’s your back-up plan? And what about the back-up to the back-up plan?
If the pandemic has taught us anything it’s that we not only need a ‘Plan B’, but also a ‘Plan C, D, and E’. Otherwise known as a business continuity plan, if you haven’t already, now is a great time to create an outline of the steps you’ll take to
help your business be prepared for events that could cause disruption. It’s a plan to keep you strong in the face of a range of potential future scenarios,
whether that’s natural disasters, equipment failure, a cyber attack, or even if this pandemic lasts for longer than anticipated.
Carefully think through each back-up option that will keep operations strong if a situation arises or escalates and put a plan in place to manage it. If
you don’t know where to start, here is a useful guide to business continuity planning from our friends at Xero,
and another on riding the waves of uncertainty as a small business. When in doubt, start with plans to deal with the most likely risks
and those that would have the most impact, review and update them on a semi-regular basis, and make sure your team is clear on how they can help should
the need arise.
7. What support is available?
By now you are probably aware if your business is eligible for ongoing government assistance, whether that’s subsidies or grants or tax relief. But what
about beyond government support? The COVID catch-cry ‘we’re all in this together’ might help provide the basis for your business going forward here.
Are there opportunities to partner with other businesses right now or for a future crisis to ensure mutual survival? Reach out to your network to learn
from the experiences, insights and advice of other small business owners who have faced disruption before.
8. What would need to happen for me to pull the plug?
If you have the answers to the above seven questions, you probably have a strong indication as to whether your business can survive COVID-19. So, what
is the data telling you? In business, as in life, we all need to know when to pull the plug,
what steps to take in order to bow out gracefully, and who you can get to help you manage this. What is the line in the sand for you and your business?
There’s no shame in admitting that your business did not survive a pandemic, and that you are now ready to move on to your next opportunity with lessons
learned and wounds licked. On the other hand, perhaps this past six months has provided you with the bulletproof confidence you need to forge ahead
with your business knowing that not even a pandemic could stop you in your tracks. Whatever your new ‘business as usual’, we are here to help.
For more, see our Six Tips for Getting Back On Your Feet After COVID-19, or get in touch with us by giving us a call on 1300 852 575 or submit an online inquiry here .
