This is the time to revise your strategic plan! Improve the following aspects of your strategy to ensure your business makes it through the current economic downturn
When the coronavirus pandemic began, companies started implementing their crisis management measures to stay afloat. Many companies have now downsized their staff, made budget cuts, and diverted their cash flows to ensure they’re able to weather temporary closures and decreased market demand.
With government authorities choosing to reopen the economy gradually, business owners have to adapt their strategies to the new economic environment they’re operating in.
Here are 6 important areas you’ll need to mull over and review:
1. Clients and Market Share
The COVID pandemic has impacted the market demand of the products/services of numerous companies in the market – a disruption with a potentially long-term impact
It’s time to review your offerings and adapt them to the market’s current needs.
Monitoring the market constantly to discover new trends will open up a goldmine of opportunities for you, thus allowing you to make the most of a bad situation.
Online sales have been going through the roof for both B2B and B2C businesses ever since the pandemic broke out.
You need to ask yourself and answer these questions if you are to successfully make it through the current economic crisis:
• How to establish an omnichannel sales & distribution plan? Can I take advantage of any small business financing lines or low credit business loans?
• What distribution methods should I select for my clients? How has the crisis impacted their spending decisions?
• How are my online sales strategies doing compared to my competitors?
3. Operations and Supply Chain Management
If anything, the COVID-19 crisis has taught us how overtly dependent we are on imports, even when it comes to essential services such as the food and health sectors. Going forward, it’s important to ensure your supply chains are diversified to include regional suppliers, thus reducing the likelihood of late delivery times and other associated risks. Use small business loans to expand your operations.
Cement the stability of your own supply chain and maintain a list of possible alternatives you can turn to in the event of a crisis. Having multiple suppliers ensures you’re never left empty-handed.
4. Remote Work
New management habits and tools have become the need of the hour to monitor projects and motivate employees to accomplish corporate goals.
The following information must be communicated to all employees on a regular basis:
• Their objectives
• Their importance in the company’s strategy
• Their contributions to the company’s success.
5. Revise Your Strategic Plan to Improve Safety and Health Issues
Work environments are undergoing a complete reorganization, especially in companies with a manufacturing-centric approach. With social distancing measures being paramount, it has become important for companies to strike a balance between worker productivity and safety.
While these new changes might result in higher costs and lower productivity levels, the company will be better off in the long run.
6. Identify Your Priorities
A detailed analysis of your company’s situation can help you come up with the right strategies to put your business on the track to growth.
After the pandemic subsides, the priority should be on taking steps to restore revenues to their pre-COVID levels. It’s critical that you take action with minimum costs and maximum payoffs for now, to ensure your business survives this depressed economy. Once the economy gets back on track, you can move on to a strategy that lets you take advantage of the opportunities coming your way.
Photo Reference: Business photo created by jcomp – www.freepik.com