Time to Reset
During the COVID-19 pandemic many businesses have been unplugged. Completely shut off. Business owners should use this downturn as an opportunity to prepare their reset plan.
To return to “work as normal” will take a while. This will be a slow reboot. Yet resetting your business can be a good thing.
Here are a few practices I recommend:
Do What You Do Best
Right now, you should evaluate your products and services and determine your best profit margins. You want to provide your highest money makers; stick with the winners. You need strong cash flow coming in the door ASAP. Regarding lower-margined business: put that on hold. You may have held too long onto the losers, anyway. This might be a good time to do away with the costly high- maintenance business that offers low returns.
Stay Away from Starting New Projects Short Term
All organizations need fresh ideas and new approaches, yet this is not the time to implement new ideas that take time or significant capital to get to market. In the short term, put your energy into your proven winners. Eventually, you can focus on research and development of new products and services.
Continue to be Financially Conservative
To keep your business afloat you’ve cut way back on expenses in every area of your company. This is a good thing, especially once business slowly returns. You now can decide what expenses are worth maintaining. You will find certain expenses are outdated or no longer necessary. This cost evaluation process will strengthen the bottom line.
Be Selective When Bringing Back Employees
If you are one of the many businesses that have had to lay off, furlough, or let go of employees, you now have an opportunity to be selective when reemploying your team. Now is an opportune time to reevaluate your entire workforce and reacquire the most efficient and dedicated workers.
This has been an extremely challenging time for business. To remain viable has been difficult. As a business owner you now can focus on what you do best, stay away from expensive start up ideas, watch your expenses and restructure your team of employees effectively and affordably. You will be plugged back in with a much leaner and healthier business ready to sustain profitability in a post COVID-19 era.
This article was written by Sam Thompson. Sam is the president and owner of Transitions In Business, a Minnesota based M&A firm that specializes in selling healthcare, business to business, transportation, manufacturing, distribution and IT companies. Sam is a Merger and Acquisition Master Intermediary (M&AMI) and a Certified Business Intermediary who has successfully guided countless business owners through the sale or merger of their company. Prior to becoming an intermediary, Sam was a successful CEO and business owner for 29 years before selling his $16 million business.