To deal with COVID-19, transitioning one’s business model into the “new normal” was vital for all businesses this past year. As we enter into a new year, and vaccines start rolling-out, businesses will now start shifting their focus onto the next stage-some activities might change irreversibly, and others might need to be restored or revamped.
In hindsight, change and adaptability were key in ensuring business longevity in 2020. But what does this next stage look like?
Most of us may have cross the crisis management stage and have moved into recovery and continuity. We share below four major approaches to reflect on that may assist your business to better adapt to the risks in this dynamic environment.
Revisiting your Business Plan could be your first step. The COVID-19 pandemic has changed and continues to change numerous organizations’ business environment. It has brought on significant disruptions in existing business procedures, demand, and supply patterns.
Under these conditions, it is very likely that many business ideas may no longer be relevant and/or may require revamping. It may be time to reconsider consumer behavior & preferences, new pricing strategy, delivery & logistics and the scale of operations, etc.
Changes can be planned and assessed in the overall business and documented through a Business Plan to pave a way forward.
In addition to revisiting the existing business plan, keeping in mind the uncertainty of circumstances might necessitate backup plans to improve businesses’ chances of surviving and eventually thriving. Hence, having a plan B or even a plan C might contribute greatly.
With situations changing rapidly, it is unsure when the demand for a particular service will peak or when it will diminish. Hence, looking out for alternative services and expanding current service or product offering might ease your return.
For instance, instead of continuing with the delivery of a wide range of goods, Daraz, an e-commerce platform in Nepal had partnered with a leading grocery store, Big Mart to deliver essential goods since the first stages of the state-imposed lockdown.
Similarly, Foodmandu, a food delivery company, had taken up delivery of fresh vegetables along with food – an approach that ensured continuity even in the times when their original services seemed irrelevant.
We highly recommend the use of Business Model Canvas to initially check the effectiveness of these pivoting plans. Who knows? You may develop a more lucrative or wholesome business model during this exercise!
Some businesses were able to keep operating or even thrive during the pandemic; their flexible, efficient, responsive, and system-driven operations model played a significant part in navigating them through those uncertain and changing times.
However, many businesses struggled to withstand and respond to the Covid-19 crisis. For them, it may be prime time to reassess, review, and build a resilient operations model.
Reassessing the business’s operations will improve the efficiency of a business operation by standardizing and streamlining operations and building capacity throughout the process, thereby improving the business’s overall productivity.
Furthermore, carrying out organizational assessments to uncover any pain points, gaps, and areas of improvement within the business processes and functional lines might help to identify the correct action plan. Identification of such hindrances could help minimize the impact of unprecedented circumstances like COVID-19 on the growth of the business.
The pandemic brought in some drastic changes in the financial health of businesses. Former financial plans of many businesses were no longer relevant or they required some revamping.
This taught businesses that they need to proactively assess the risk from a financial standpoint and re-plan the finances.
Additionally, as a result of improved and improvised business plans, there may be sudden changes in budget modules, reallocation of finances within and out of business, and changes in many more internal financial titles.
These modifications will have to be carefully planned and executed. Careful planning and execution of the financial changes are essential for the success of the business .
Furthermore, a robust financial model will help businesses make strategic decisions by assisting businesses in assessing their current financial situation and laying out financial targets for the future.
Biruwa Advisors hopes to help our clients better adapt their business to the changing world under/post-COVID-19.
Our expertise lies in the areas of research, developing business plans, operations management, and financial analysis.
If you need any assistance in these areas – do write to us, We will also be happy to just chat and discuss your plan.
As a part of our CSR initiative, Biruwa Advisors Pvt. also conducts free one to one mentorship session where entrepreneurs can discuss their ideas with us to get an independent third person perspective. Fill the Mentorship Form and one of our team members will call you shortly to schedule the session with our Experts.