We continue to highlight Managing Partner Neil Hughes’ ‘Seven Cs of Business Recovery.’ As the economy starts to reopen, what are the necessary steps you should to take to ensure your business is positioned on the road to recovery?
We recently looked at why, when navigating a crisis, companies must secure the co-operation of their co-workers and staff. The next step in the recovery process is a turning point.
Chapter 4: Clarity of Purpose
It is time for a new business plan. Clarity of Purpose acts as a powerful catalyst for positive change and essentially means ensuring that your main business objectives are coherent, clearly defined, easy to communicate, and directed at the challenges presented.
You are more likely to source new customers if you can refine a business plan which takes account of the new financial realities. In short, your business plan should include:
- An Executive Summary
- Details of the promoters and your advisors
- The background to the business
- The strategic element of the plan i.e. several realistic, measurable objectives to be achieved over a specified period of time
- Specific sales and marketing strategies
- A financial analysis with profit and loss and cash flow projections
- A SWOT Analysis (strengths, weaknesses, opportunities, and threats)
An improved plan demonstrating a renewed clarity of purpose is essential in dealing with your bank regarding facilities for the business: an overdraft, a term loan, leasing for machinery or a commercial loan.
It can also attract potential investors, reassure current investors as to the medium – to long-term security of their investment and help reassure staff that you are being proactive in dealing with current challenges.
Making Tough Decisions
To come out the other side of a crisis, difficult decisions must be made. It is up to business owners and managers to display the courage to lead, and make the tough choices and modifications to adapt their businesses to a changing market.
It’s natural for a business owner or manager to become disillusioned with entrepreneurship during this time of change and disruption. However, now more than ever, you must rediscover your entrepreneurial spirt and evoke the sense of excitement and possibility that drove you to set up your business in the first place.
Managers too may start to doubt their own ability as the decisions that need to be made become increasingly difficult.
Remember, you are in a position to identify areas in which the basic business objectives could be adapted to better suit new economic conditions. Trust your own judgement and have the courage to present your ideas to the owners/share holders of the business.
While you may be experiencing self-doubt, it’s important to look beyond the immediate obstacles and see the opportunity that lies ahead.
As you create the right conditions for recovery today, you cannot foresee the breaks that will come your way from future trade. Customers that you have never met before will come through your doors. Contracts that have not even gone out for tender yet will be won by your business. Referrals will be made to you from customers to whom you have given excellent service in the good times of recent years.
If you can set out a clear understanding of the strategies needed by your company to deal with this crisis then you have reached the turning point in your recovery plan.
Read Chapter One Here
Read Chapter Two Here
Read Chapter Three Here
For more detail on how to get your business positioned on the road to recovery, ‘Beating the Recession: The Seven Cs of Business Recovery’ is available to buy HERE.
If have any questions on the topics discussed, feel free to get in touch with Neil Hughes, Managing Partner, on a strictly confidential, no-obligation basis on (01) 66 99999.