Many companies are starting to plan the reopening of their businesses, after being forced to close their doors amid covid19.
According to Marilyn Landis, CEO of Basic Business Concepts, which provides CFO services to small companies, although many companies are expected to reopen in a matter of weeks, owners must be aware that survival mode is necessary if they are to keep their businesses afloat in the new environment.
Here are five tips for getting back to business:
1. Be smart with cost cutting.
Many companies will be cutting back costs as is the norm during a crisis like this, but doing so in the long term might actually be dangerous. Before making said cuts its important to run these through your financial projections and make a plan of how you will grow your way out is this crisis because every cost cut means a cut to generating profit.
2. Dont lose your employees.
During the current outbreak many people have unfortunately lost their jobs or had their hours reduced. Many employees will need to be convinced to return to work, with health concerns and other reasons driving many to prefer to stay at home.
3. Rethink your business model.
You may not need to change it from top to bottom, but rethinking your business model may just be the thing that keeps you afloat in these times. Ask yourself the following questions:
- What should your business model be when you come out of this?
- Is your current business model viable? If so, how can you hang on until it’s viable again?
- Are there ways you can pivot all of your expertise into a better revenue stream?
4. Look at new vendors.
If your doors reopen, the vendors and people in your supply chain may not. What does this mean? It means you may need to look at a whole new list of vendors. The outbreak may has a massive effect in your supply chain, including customers and logistics.
5. Embrace local programs.
We made a list of resources for startups and entrepreneurs battling covid19 – check it out here.
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