Sep 22, 2020  | Tags: business, COVID-19

Our Insights

After surviving COVID-19, some business owners are now thinking about the future and contemplating how to kick start growth again. It won't be easy, but it is certainly achievable by following these steps:

Review the damage

Before you can start to rebuild, you need to know your numbers. Assess your current situation and the financial damage your business has endured. What is the impact on your assets and associated investments? Who knows, it might not be as bad as it seems. Either way, don't shy away from it. Putting your head in the sand won't help!

Update financial documentation

All of your business and financial documentation needs to be up to date, and updated. This includes preparing your new financial projections and forecasts, and ensuring your records are accurate. Bear in mind our conditions are constantly evolving, so you need to allow for flexibility and conducting regular reviews.

Adjust your business model

It may be time to move on, or at least evolve, from your prior business model. So, take what you've learned from the pandemic and adapt in a proactive manner.

Now is your chance to be innovative and go down a different path with your business. You may need to find new and alternative income streams, pivot and adjust to what the market now wants and needs from you. COVID-19 has had a massive impact on consumer patterns, behaviours and values, so your previous framework may no longer appeal.

Using research, data and even surveys can help you determine what solutions your customers are searching for. Explore changes in what you provide and the way you provide your service, whether it be expanding to online services, offering virtual consultations or providing access to new technology.

In a world of lockdowns and restrictions, and uncertainty about the future, an online business model is imperative to success, so focusing on your digital profile will be key.

Adjust your strategy

Your pre-COVID business strategy is now likely irrelevant. Thoroughly consider what your next steps are and update accordingly.

Include your new financial and business goals, but remember not to jump too far ahead. Rebuilding your business will take time and your sales won't instantly bounce back. So, it could be detrimental if you immediately try to return to 'normal' operations. Spread out your resources and work towards the little victories, even if it's a seemingly small percentage in growth.  

You also need to consider whether you require further financial assistance and the best method to secure these funds.

Identify the opportunities

Don't just focus on the doom and gloom. There will be positives that you can leverage. Being forced to think outside the box and explore alternative business avenues could open you to new consumers, new services and products, and new ways of generating an income. COVID-19 has also revealed effective ways of collaborating with your team and enhancing productivity through technology, software and remote working. These trends are likely to stick around after the pandemic is over, so putting your foot in the door now will ensure you thrive in the long-term.

Mitigate the risks

Use what you've learned from COVID-19 to protect your business. Ensure your finances are in order, insurances are up to date, eliminate looming debts and create a safety net for your business to fall back on.

Take extra safety precautions and keep your workplace COVID safe. Invest in the appropriate protective equipment, sanitation and establish COVID-safe protocols such as social distancing. 

Finally, if the pandemic has taught us anything, it's the importance of safeguarding your business and preparing for the unexpected. Make sure you have effective contingency plans in place and your business has the resources to withstand any future crisis that hits, or even a second wave of COVID-19.

Communicate

Reach out to all your employees, including those you may have had to let go recently because of COVID-19 job cuts. Be open and transparent about what's happening and how you're planning to rebuild the business. Regular communication will ensure you can re-employ and rebuild your team when the time is right. 

In such uncertain times where everyone is tight on their spending, it's never been more important to communicate with your customers. Staying engaged will encourage regular consumers to stick by you and continue to support your business. Fortunately, we have access to many digital communication avenues on top of the traditional platforms, including email marketing, social media and text messages, so you can reach all your targeted groups.

Get help

As a business owner navigating challenging times, you need a great team of advisers - including an experienced financial adviser, accountant and lawyer who can help guide you through your rebuild.

Talk to the team at Calder Wealth Management. Call us on (08) 8373 3333 to schedule your free initial appointment.

Written by Ben Calder at Calder Wealth Management.

This is general advice only and does not take into account your financial circumstances, needs and objectives. Before making any decision based on this document, you should assess your own circumstances or seek advice from a financial adviser and seek tax advice from a registered tax agent. Information is current at the date of issue and may change.