The secret of change is to focus all of your energy, not on fighting the old, but on building the new.
While Socrates rightly iterated this thought eons ago, it couldn’t stand any truer today.
In business, change remains the only constant. And with the current pandemic scenario, it’s only imperative for leaders to take a closer peek at their systems, processes, and strategies.
Navigating a business during such uncertain times calls for an analytical approach with a focus on visibility, control, and agility. Visibility into cash flow, receivables, projects, inventory, and operational risks. Sensible advice, a list of potential capital sources, and forward-focus are also key. With countless critical decisions to make, you need the right numbers, now.
So, let’s get to the meat. In order to steer through challenging times, businesses need to look at three vital aspects.
- Visibility: Take Stock of the Situation
Liquidity can become a hitch unless you have the reserves. This is particularly true for smaller companies, which often require access to credit lines as part of normal operations.
Hence, the first step to gaining business visibility is to take stock of resources at hand, pending liabilities, and outstanding receivables. Then make the best guess estimate of how much cash you’ll need to sustain operations for various timeframes, based on your estimate of how long it will be until you can resume normal operations.
With precise, up-to-date financial data and “what- if” scenarios in hand, you can determine the steps you need to take. The nature of the crisis will dictate how willing suppliers, landlords, lenders, tax authorities, and insurers are to work with you. Each has a vested interest in the long-term health of your business and may be willing to help by decreasing, extending, or deferring payments.
- Control: Determine Immediate Priorities
Pay attention to the basics: process, performance, and people.
Process: Shift focus on immediate priorities: managing payroll, cutting costs, and maintaining liquidity.
Performance: Monitoring key performance indicators help identify performance issues and make adjustments. Tracking KPIs should be done in real-time.
People: Employee productivity is the first to get hampered during challenging times. Regular communication with employees is key, letting them know about the business status and updates, even when things are not going too well. Also, the last thing you want is to lose productive and experienced team members, who will help you succeed when normalcy is restored. So, trying to retain the best employees should be your go-to strategy.
- Agility: Change to Win
Times change and when everything pops back to normal, some businesses struggle to survive, while others end up rightly placed for the new opportunities. While dealing with the on-going issues, render some thought on focusing the brightest minds on reimagining products and services when economic conditions stabilize and growth returns. A slowdown can also work as the right time to implement innovative ideas, but with caution.
In all, steering through uncertainty is not only an art but also a science. Major crises transform things in the short term, and then for the long term. And so, it becomes important to juggle through the tough times, prepare for the good and aim for the best.
NetSuite offers real-time visibility into your business, no matter what industry vertical you operate in, or your business size.
At NetDynamic, we offer NetSuite implementation and administration services to provide better control of your financials, payroll, projects, inventory, and suppliers, and manage unforeseen business uncertainties effectively.
For NetSuite implementation and administration services, reach us at 1-888-232-3319 or firstname.lastname@example.org