Your business has undoubtedly been affected by the COVID pandemic. If it was once prosperous and viable, it can one day again be successful, even in a future which may never go back to “normal.” Pivoting is returning to a business model that existed during your startup to make possibly large or extreme adjustments to accommodate new growth or a changing external business environment. In the case of COVID-19, the business environment is almost alien, and to survive and thrive, pivoting to embrace and make changes is necessary.
The COVID-19 business environment has changed completely. First, think about your original plan. Be ready to shift budgets and priorities outside of your initial assumptions for 2020. What aspects of it were working before the outbreak? What aspects of your business environment changed, and how did that directly affect your original model’s outcome? Adjust the plan you had intended to execute earlier in the year. Rethink your new deadlines, milestones, and forecasts. They should still be concrete but build some wiggle room to adjust for unexpected twists as the pandemic continues.
Let’s assume for a moment that you had all the proper elements of a business plan in place. First, we will go into the actions you should take to ensure you successfully pivot your strategy through the pandemic while addressing customers, other stakeholders, and putting the company in a safe and prospering position.
Create a flexible work arrangement for employees that might include working remotely or protecting workspaces with distance, shields, and new safety requirements per the CDC. Check temperatures or administer testing to avoid possible infection risks with employees and others on-site who may not be able to work remotely. Communicate regularly with employees regarding government policies and company efforts regarding their safety. Do all that you can to generate good will and a spirit of cooperation based on "we're all in this together!"
Customers and suppliers need to be updated regarding COVID impact on your service or delivery. Using caution and an entrepreneurial mindset, develop an organic but regular communication plan for updates relevant to each of your stakeholder groups. Here are a few things that work for thriving businesses:
The more visible and upbeat you remain, the more likely your customers will be to remain loyal to you and your brand.
On the administrative side of things, review loans and contracts with creditors or investors. Check out potential liabilities concerning government regulations and new requirements with your legal team.
Evaluate and assess your short-term liquidity along with your operational and financial risks so you can respond quickly. Look at alternate supply chains. Assess how your business plan and budget were directly impacted. Follow government legislative updates and programs available to support your business and apply when appropriate.
Build resiliency into your current plan by executing your strategies and closely monitor situations.
The pandemic has shown companies that some practices used before may now be forever outdated. Working remotely, hiring virtual assistants, and allowing for an expanded IT department may be a lasting side-effect to this forced evolution of business models. Successful recovery will depend on keeping the mindset to reshape plans, goals, and strategies necessary for businesses to thrive.
Remember that Myrick CPA is here to help you with planning and navigating every step along the way. We aren't a typical accounting firm. We specialize in building long-term relationships with business owners and organizational leaders who are committed to smart growth, even in the toughest of times. Get in touch, today.
Charles Myrick and team