Running your own business is a lot of work. No questions. From late-night inventory to early morning delivery, all the staff management and paperwork that goes behind the scenes – as a small business owner – there’s a lot on your plate.
When the future is uncertain, the road ahead can feel even more difficult. The coronavirus pandemic has hit small businesses hard, leading to temporary captives, new security procedures, and limited individual guest capacity.
As small business owners continue to adjust to the state of the pandemic in their cities and industries, there are awkward times to prepare and draft their business plans for the next year.
However, as it seems – amidst all the uncertainties – experts and successful entrepreneurs say that it is the most imperative thing for businesses to look ahead to the next year now.
The current uncertain circumstances make a plan even more urgent. It is a time to think forward; Companies planning for the future have a better chance of survival.
The task is quite challenging for companies that have struggled to cope since the onset of the pandemic, from adjusting their operations at physical locations to staying ahead of changing levels in cash flow, staffing, and customer bases.
Need for a strong, flexible, and progressive strategy is necessary to survive in such uncertain times. Harvard Business Review of 4,700 public companies found that 17% of those companies did not survive the recession: went bankrupt, acquired, or became private.
So what do we do about it? Specifically, what do we do as business owners, managers, and entrepreneurs? Each small business is different, and each carries its own risks and rewards. These differences mimic the strategy of another company to unrealize it. Nevertheless, some general strategies can help business owners stop taking on the water and start out independently.
A valuable superpower that lies to many entrepreneurs is that many entrepreneurs quickly adapt to the changing environment. Even with a rock-solid plan, you cannot estimate every variable. If a business owner is involved with a scheme that is no longer working, they will find themselves sinking like the Titanic.
This is where 80% of the plan comes into play. `80% planning is a way of planning that dissolves “planning paralysis.” Planning paralysis occurs when your mind becomes hyper-focused to be employed for every task, but you don’t know what each task is. So you do not move the project forward! Much of this is “analysis paralysis,” which is a common reason why business owners do not achieve their goals.
The 80% plan also sets the right mental framework for estimating the “on the fly” flexibility that most complex projects require: No matter how detailed your plan is, you only plan for 80% of potential situations. The 20% will always present themselves once the situation is detected.
If the original strategy is not producing the desired results, most product promotions will have to be modified mid-stream to correct message writing or change the marketing strategy.
Many live events (even if they are virtual) can have unexpected challenges, which have to be navigated mid-stream, and you will never be able to plan for it. Even a simple podcast launch can hit bumps and mess up your time. You cannot plan for every situation, so it is better to go with 80% planning to progress rather than wait for the right plan.
Once you successfully identify what works for you and what doesn’t, you need to prepare a plan to avoid paralysis and boost the business bringing in a significant chunk of your monthly revenue.
Don’t wait for one business to completely shut down to focus its energy on another, more profitable one. Customers in your business will not disappear overnight. You have to smooth the transition journey for them as well. It is a gradual process. Likewise, it will also take time to get new customers for your new business. Set both processes in motion simultaneously.
Here are some considerable points to develop a plan for your small business.
Review Finances in Different Scenarios
1. Whenever you map your finances for your company, use both conservative and best-case scenarios.
2. People tend to attack the most apparent immediate problems vigorously and without hesitation. It is understandable and can make good business sense in some situations. However, it is also advisable to step back and look at the big picture to see what is still working and what may need to be changed. It is an opportunity to understand the size and scope of current problems and understand your company’s business model – determining how its strengths and weaknesses come into play.
3. Whenever you see a disaster, the most important thing is to take action. Sometimes we can be a bit like a deer in the headlights, not assuming what is going on is frozen on the spot. If we do not leap into action, things will always go wrong, and they will deteriorate quickly.
4. Now you are planning to run your business, and the road is curvy and bumpy, and unpredictable. So, you need to pay more attention and concentrate carefully. Review your numbers often. Watch for change, surprise, and unexpected corners. It is about the early warning. Observe the short-term problems closely. Use your plan as an early warning system.
5. You need to practice for good cash management. Companies can improve their cash position by ensuring that invoices, collections, and payments run with maximum efficiency. Make sure you invoice accurately and swiftly, collect determinedly and efficiently, and pay judiciously within the terms of your contracts.
6. It is impossible to imagine your business pre-Covid very quickly, especially if you have made some changes in the last few months, such as new products, services, or technology.
Instead, take a good look at what is working in these current circumstances. Before you can look further, you need to have a clear picture of your current business. This means identifying the parts of your firm that are performing well and areas where a change in outlook may be needed. “
There may be some changes that you “undo,” such as employee reduction, so decide on the criteria that will allow you to return those.
Conversely, look for changes that can advance your company well. Are there new equipment, technology, or services that have enhanced your capabilities to produce? For example, systems that enable pickup service or faster Internet and communication technologies have enhanced eCommerce and improved customer experiences.
Conclusion
When a business owner is enthusiastic and motivated about their entrepreneurial efforts, it affects the entire organization, creating a more welcoming and positive environment for both customers and employees. Entrepreneurs who express passion about their business have higher income and sales revenue than less passionate entrepreneurs.
Therefore, this is an excellent time to re-show your initial vision and entrepreneurial spirit to help bring innovative ideas to your plan. If you want to grow your business in the digital world. Call us. We are India based digital marketing agency, serving digital solutions to our clients. Call Now!