Author: Tony Rule, Partner, TAG Financial Services
Winston Churchill’s words seem just as appropriate today as they did in the midst of World War 2. Business owners are being tested from all sides during the Covid-19 epidemic. And whilst it might be a bit too dramatic to compare the devastation and loss of war to our current situation, the sentiment is just as important now as it was 75 years ago.
Business ownership is about mindset and competition. It is about having the persistence to improve your business just a little bit each day so that you can be better than the next guy. If you are not improving – your business is going backwards. And whilst I acknowledge that various businesses and industries have been hit to varying degrees by the latest round of shutdowns, the more work you can do now to improve your plight, the better your business will be in the future.
Focus Points
So, what is that you will be achieving over the remaining lockdown? Here are some ideas to focus your energy…
- Strategy
Will your industry and your business be the same when things get back to “normal”? What can you do now to jump ahead of the pack? Is this the right niche in the right industry or is it time to adopt a new position – and how will move be accomplished? Take some time now to think about what your business should look like in three years’ time. - Technology
How has your technology held up over the last five months? Have your clients moved to purchasing online – with you or with your competitors? Are there manual processes that should be automated to improve your gross and net profit margins? What development is going to make you better than your competitors – either internally or in the field? - Team
What is it about your team that you can fix during this downturn? Is there training or mentoring that should now be done? Are each of the team in their right places and if not – when is the right time to act (now or when JobKeeper ends)? What will your next recruit look like? - Customers
Ring each of your customers and make sure that they are ok – not a sales call, just a “how are you going?” call. What information do you have that can help your customers at the moment? How can you show them that you are thinking about their situation? What can you learn from them that will make your business better? - Marketing
Make sure your marketing information and databases are up to date. Do you have a plan to reach your prospects when we are out of lock down? What is your new value proposition? Should you change your target market? Are there new products or delivery mechanisms that you should be providing? Is it status quo or innovation that will win the day? - Finances
How stable is the business at the moment? What is your cash situation like? When will you be forced to act? What could you do now to buy another 2 or 3 months? Is it time to negotiate with the landlord, suppliers and customers again? Are you accessing all available business assistance grants and deferrals to get you through the lockdown? - Personal
Do you have your personal affairs in order? Is it time to review your insurances to ensure premiums are minimised? Is it time to refinance loans to ensure interest rates are as low as possible and to access spare equity? Has the last six months damaged your retirement plans and is it time to update your wealth projection? What is your exit plan for the business?
Rise Above
Every step that you can take during the pandemic counts for two steps at any other time. If you can move forward while your competitors are trying to hold ground or are moving backwards – then that is a win.
The time for worrying about how the government (or others) have stuffed things up is over. Accept what has happened and then adapt to take advantage of the situation. What we have now is not good or bad – it is just different. And we need to factor this difference into our future plans.
If you need any assistance with moving you or your business forward during these different times, please contact us on 03 9886 0800 or via email.
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Disclaimer: The information contained is general in nature. Professional advice should be sought before acting on any aspect on this page. Financial planning services provided by TAG Financial Advisors Pty Ltd (ABN 77 154 205 017 AFSL 415632), a wholly owned subsidiary of TAG Financial Services Pty Ltd (ABN 67 075 374 686). Copyright 2020. Please do not reproduce without the expressed written consent of the author.