Planning for the Future
For Small Business Owners and Entrepreneurs to Survive and grow in crisis is very crucial like in COVID-19. And Will all depend on preparedness and contingency plans they have. We will have to divide our life, Business and Families into various facets and individuals. Who are able to do this will be able to deal with the situation in better ways than others.
Also read:- COVID Impact on Management Industry
Cash Flow Management – Key for a Business Growth and Survival in crisis
It would be the most critical element for survival and Growth. Don’t run out of money as it would be the core fundamental success factor in the current times. Business owners should focus on Cash and Cut all non-essential costs possible.
Debt Management should be a major focus of the business. Try to reduce the interest and Debt component when cash inflow is uncertain. This can be achieved through Debt transferred to equity. Reduction in capital expenditure and Better Cash Inflow Management.
Cost should be cut down in systems and processes of business wherever possible. Owners should do the analysis of all cost components and try to reduce cost by 10% in every component. Owners will find that the highest cost component is Manpower for most. But if you rely on layoff which is short of them working it will lead to no growth and slowly business will collapse in the long run. Owners with their Managers and team should identify various cost components and bring efficiency in them all with a focus on the Power of One improvement at a time.
Also read:- Is MBA still a Game Changer in 2020
Layoff also brings with it low morale and business should focus more on increasing efficiency. Restructure compensations to performance or ask employees to go on study leaves. And Take up advanced professional courses like MBA. So the same person can return back and help in the growth of your business.
When planning to send an employee for advance courses it would be a good idea to have tie-up done with the educational institution. So that they can prepare the employee specifically towards your Business challenges. Also one should choose the Best institutions like one of the IIM’s, MDI Gurgaon, Taxila Jaipur or XLRI who have strong Corporate programs.
Decision-Making Process
Businesses will have to improve the decision-making process they have. In emergency and crisis time businesses that have decentralized decision making systems do better than centralized decision-making systems. So Business will have to take up quick decisions and make the managers more empowered to make better business decisions.
The dilemma would be to move back to centralized decision making when things improve as frequent change is not easy. So Business owners will have to provide leadership roles and give direction to employees towards Success and growth.
Focus on Technology:
A business should focus on digital transformation. Using technology helps owners understand the business core value in better ways. With the help of new technologies like the Internet of Things, AI and Big Data analytics. Business will be able to make faster and well-informed decisions.
Companies that will focus on adopting new technologies will find new ways to add and increase value to customers. Reduce cost leading to business profits, and will have a flexible product change system. This will all help it survive and grow. Now more than ever Owners and Managers should look for better technologies and invest in R&D and grow.
Manpower Planning:
This is another most important facet for survival and growth, In uncertainty. Businesses will have to do proper work analysis of each individual they have and teams, Restructure Compensation towards performance and improve efficiencies in human resources. This goes to the core concept What Jim Collin’s talk about in his book Good to Great on First Who then how “ We should first get right people on the bus (business), Wrong people off the bus ” Once we have the right people in our business as employees and team it’s easy to get them to achieve any goals.
So employee planning will lead to Performance-based which will allow for more flexibility to employees to work from home, Flexible Work time and more role in decision making and personal growth.
On the employer’s part also employees will need to understand that they will have to accept these events and improve and increase efficiencies which are better then layoff. They should as suggested before enrolling in managerial development programs with Strong Corporate institutions like IIM’s, MDI Gurgaon, Taxila Jaipur, XLRI and few who have strong Growth and Change management courses along with Business Analytics and focus on Technology.
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