IMPACT TO BUSINESS TRADE THROUGH DISRUPTION
- Review your business plan
- Contact existing customers if there are any interruptions to your business or service
- Maintain an up-to-date website or other online presence
- Be willing to re-think plans- an unflagging attention to customer relationships can turn disaster into opportunity.
- Develop a business plan that focuses on getting the business back on its feet rather than expanding.
- Take the opportunity to focus on some of the things that you hadn’t got quite right the first time around, such as marketing, customer service, advertising , branding and the website.
- It is really important to focus on your existing customers at this time, rather than trying to get new ones.
- Explore any offers of assistance available, such as government grants and funding, examples: purchase a van for deliveries, hire a trainee whose wages are subsidised for one year etc.
SMALL BUSINESS RESILIENCE
- For smaller businesses, the key vulnerabilities centre around loss of key customer/s (and its significant impact of cashflow) and the loss of key personnel, including the business owner.
- Resilient businesses tend to have adaptable resources and processes that allow them either to avoid a disruption, or to respond quickly to challenging circumstances.
- However, what makes the biggest difference is whether owners and managers are thinking strategically about these vulnerabilities, and whether they are taking active steps to address them (e.g. investing in measures to reduce the effects of avoidable disruptions).
While smaller firms generally lack the formalised planning and resources of larger businesses, they do benefit from agility, flexibility and adaptability in times of crisis. With less bureaucratic structures, they have the potential to make decisions quickly, and to tap into family, social and community networks.
Ideally, you should also include a succession or exit plan strategy in your forward business planning.
Succession Planning is the procedure of identifying successors within a business and providing the opportunity to increase their skills so that they can replace the current management when the time is right for you to stand down. The process concentrates on the shift in management from one generation to the next within the business.
Recent statistics show only 47% of small business owners have an exit strategy, 22% of those who do have an exit plan simply intend to close their doors and walk away, 60% of them are still actively reinvesting profits back into their businesses and 50% are working more than 50 hours a week, even if the business will close, and 1 in 4 business owners aged over 60 are planning to close their business at retirement.
Exit Planning is the complete review of factors that impact a business owner. This includes present day and future planning / organising for the company, as well as the company value, staff and market positioning. It begins with your idea of your goals and objectives, as well as your existing and forecast resources that can identify suitable strategies and steps that can be taken by a business owner to attain their goal, and delivers you with a number of key information reports covering exit and succession plans, gap analysis report , action plan report, business attractiveness to potential purchaser report, and exit plan business report.
Exit planning is not about selling. It is about maximising the value of the business , while protecting yourself , family and staff from an unexpected event where transition is neccessary eg death, disablement, disruption, disagreements etc . Talk to Highvale about the options available.