Reimagining Your Business and Financial Strategy After Q5 2020
Updated: May 7, 2021
“Success is not final, failure is not fatal: it is the courage to continue that counts.”
- Winston Churchill
Here we are entering the second quarter of 2021.
People are calling Q1 2020 "Q5 2020!" And I have to agree.
Even though many countries are rolling out the vaccines as quickly as possible, the economy isn't back to the pre-Covid level.
Much of the change we’ve experienced has been out of our control.
However, if we focus on what we can control, such as our response to change, we can regain some control and plan to maximize outcomes.
Five things within your control that will have the biggest impact on your business:
1. Working on your business, not just in it.
It’s hard stepping back from your operational role. Many of us have been in ’crisis mode’ for an extended period - running on adrenaline and coffee… but it’s still essential to set aside time to focus on your plan and review it regularly.
After all, working hard will only pay off if we’re working on the right things. Block out two hours each week to step out of your business and ensure your plan is executed. If this is something you struggle with, ask someone to hold you accountable.
2. Your product/service mix.
Likely, you’ve already made changes to your product or service offering. This may have happened under pressure and without a proper plan. Take time to review your offering thoroughly.
Which products or services have the highest margins?
Which products or services haven’t been performing well?
Are there new products or services you could introduce which complement your current offering?
How do you calculate your pricing? Is it based on the future or the past? Check out how this one social entrepreneur building winning pricing based on the future.
Do you need to review your pricing again?
3. Marketing and communication.
Have you updated your marketing plan to reflect changes to your business operations?
Clearly communicating with customers and prospects is essential in these times as they need to know when you’re open, that you’re taking their health and safety seriously, and any changes to your offering. You also want to be front of mind as customers look to support businesses.
4. Human resources.
Your human resources department likely took a hit over the last year. While government support helped save some jobs, they had no choice but to reduce their team size for some businesses.
Have you spent time reviewing your organization structure to identify resourcing gaps and areas where you’re over-resourced?
You must ensure your team is the right size for your business with the right people on board.
5. Your finance, profitability, and cash flow.
Do you know cash isn't profit and vice versa? Read more on this blog post.
You may feel this part is out of your control; however, you can take steps to regain control of your finances.
Don't see finance as stand-alone. Instead, shift your mindset and see finance as the center of information to bring together your product/service mix, marketing plan, sales strategy, and human resources together.
Update your business budget and forecast; ideally, you’ll review and update this monthly. If you’re struggling with cash flow, we can help you identify improvements you can make to your processes to manage your cash flow.
Morale and progress must focus on these things to get our business in the best possible shape. Even if your business stayed open during a lockdown or you’ve been back to business for a while, use these simple strategies for continuous improvement.
Success in 2021 will look very different from previous years. What does it look like for you and your business?
If you need help developing a plan, improving your profitability and cash flow, or want someone to bounce ideas off, get in touch.