It is time to start rebuilding stronger and smarter businesses.
Ann Gibbard shares her thoughts.
Small and medium business make up 97% of all businesses in New Zealand and generate around a third of New Zealand GDP. But for many lockdowns have been really tough. Income has been either reduced significantly or even reduced to zero for an extended period. Even out of lockdown, revenue is not going to be at the same level as pre COVID-19. Many will not re-open. Others will not survive the first 3-6 months after lockdown.
But New Zealand entrepreneurs are resilient and have quickly found new ways to work. Many of us have been working from home and are finding new ways to communicate with each other, manage workloads and productivity. We are finding new ways of getting our products and services to our customers and we have been forced to assess and improve our health and safety policies to ensure the safety of all.
But where do we go from here?
For many, a rethink of the business model is required.
Our target customer may not be the same as it was and many people have lost their jobs and have less money than they had before. How can you adapt your product and service offering and your advertising message to match the new environment? There is a groundswell of support for buying local and supporting local business, so how can you take advantage of that?
Revenue levels are like to be reduced for some time. What does this mean for your cashflow? How can you reduce costs? How can you work more efficiently? What is the minimum revenue you need to have a sustainable business?
Communication is key through all of this. Keep talking to your staff so they know what is going on. Your staff can contribute ideas on improvements. Talk to your customers to let them know how they can continue buying from you. Talk to your suppliers to ensure a security of supply and to agree credit terms. Talk to your competitors to find new ways to collaborate. Talk to your bank to access short term cashflow relief, or to shift loans to interest only in the short term. Talk to your trusted advisor to work through your cashflow forecast for the next 6 months, and to work through your plan for regrowth.
Together we can rebuild stronger and smarter businesses.
Ann Gibbard is a Business Success Partner with Oxygen8 Consulting. For help with rebuilding your business, or for a free Business Diagnostic, contact Ann at ann@oxygen8.co.nz or 021 682 014.