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The shoots of recovery I talked about in last week’s blog look like they’re beginning to grow more secure roots. So this week, I’d like to offer some tips on navigating the top three Covid-19 recovery business states you may currently find yourself in.
I hope you find it useful.
Covid-19 Recovery State 1
In this state, a business has been negatively affected by Covid-19, and is in survival mode. Perhaps the business is under siege – decimated as one business leader described it to me. If that’s the case for you, your business may have faced cancelled orders that left you with no choice but to furlough staff, and make cuts to shore up your business.
It may feel like an overwhelming place to be and if it does, that’s a valid feeling in a very stressful time. Though much is out of your control, there are things that are in your control. Hard though it is to not focus on the red ink, doing so can drive decisions that make life harder. Make too many cuts, for example, and there’s the risk that as interest picks up, it might be a struggle to find the resources to meet demand.
Make cuts, yes, but also ensure you’re giving yourself the resources to break even when the opportunity presents itself.
Tip: In every change you make, keep an eye on the future. Ask yourself, What are the critical pillars of my business? and How can I reinforce them to break even as soon as possible?
Covid-19 Recovery State 2
Recovery State 2 is where a business is also negatively affected by Covid-19, but focused on recovery. It has the resources to meet a slowly building demand because, although it made changes to ops, it kept the people and supply lines intact to ensure the business can still function.
If you’re in this position, you’re running lean, but you’re still running. The goal now is twofold: a staged business recovery that matches the easing of restrictions beginning to emerge; and a consolidated and stable financial recovery.
It may mean rethinking your product lines as I mentioned in last week’s blog. Or it may be shifting your focus to a new customer demographic.
My point is, your product can play a role in recovery. It just requires some flexibility of mind to establish how. Your long term recovery depends on a stable financial foundation, so though it’s tempting to want to return to profit quickly, the need now is to be aware that a second wave is possible.
Tip: Focus your recovery strategy on two core questions: What are my potential customers doing to aid their recovery? and What do those potential customers need for their recovery that I can provide?
Covid-19 Recovery State 3
In Recovery State 3, a business has been positively affected by Covid-19. Though that sounds like a boon when others were stumbling, the reality is different. Take Zoom for example. According to cnet, participants using the platform jumped to 300 million in April – up from 10 million in December 2019. The rush to video conferencing helped grow its market share, but it also revealed privacy issues. To their credit, the company responded quickly by buying Keybase. It’s a case study in how a surge in business can go from a blessing to a curse.
That flexibility and ability to respond to the business landscape helped Zoom, and it’s what all businesses need in State 3. That’s because if your business has boomed it has also incurred costs. And those costs may be expenses that aren’t entirely covered by the spike in revenue.
My point is, continuing the trend in business growth is the focus of State 3. That’s needed not only to cover the costs of responding to increased demand, it matters because your business is in a position to capitalize on its increased brand awareness.
Tip: Strategic focus is vital in State 3. Ask yourself What are the post-pandemic opportunities for my product? and How does my business need to pivot to realize those opportunities?
Help if You Need It
At Innate Leaders, we’re donating our expertise to help leaders develop new ways of thinking to help reduce layoffs, maintain supply chains, and address their business challenges, so businesses and people are financially viable six months from now.
If you’re a business who is struggling financially to adjust to the Covid-19 pandemic, we’ll help for free via video-conferencing to help you develop a mid-term strategy, or rethink how you do business.
There’s no criteria to fulfill. Just contact us and we’ll do whatever we can to help.
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