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How To Keep Your Home Business Running Well By Chet York
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How To Keep Your Business Running In An Emergency
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Other uncategorized cookies are those that are being analyzed and have not yet been classified into a category. The COVID-19 crisis is unique because it has affected 195 countries worldwide. Business is global these days; have customers and suppliers spread over much of the world; their business processes are executed in different parts of the world. For example, a bank in Europe may have customer service centers in India, a legal support desk in India and financial operations outside of China. When countries go into blockades, businesses experience a drop in sales; some of them are stagnant, while many others are down 25 to 70%. Supply chains are disrupted and business processes are not operating as usual. Employees are gripped by the fear of uncertainty surrounding their health, work and future prospects for their families. Given this background, what can the leadership team do to keep the wheels of the business rolling?
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Not everything is down in the dumps. Humanity around the world needs the most important and health care in this hour of crisis. Can organizations that serve multiple industry sectors redesign their resource allocation plans? They should focus most of their people, technology, capital and leadership bandwidth in these domains and make the most of the opportunity.
This may not be feasible for every business or for all parts of the business. So companies have to rely on cost optimization opportunities. They must think creatively; for example, this crisis has taught us how to work from home and ensure normal productivity. Companies can learn from this and implement a hot desk policy as standard operating procedure. This is an opportunity to review the norms and benefits we consider normal.
There are many technological solutions. As companies have been forced to pause, there are opportunities to review these decisions and decide whether some of them could save the company money or drive new behaviors within the company that increase productivity. Likewise, you can review all the suppliers and partners you use; align them for greater performance.
Employees wanted time and space to learn new skills and hacks; they wanted their organizations to devote time, attention and investment to employee development. This is a good opportunity to learn, adapt and grow.
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Employee productivity is another dimension that human organizations do not have a very robust system to track on a regular basis. Most often, setting goals and aligning them across the organization are activities that are meant to be done strictly and are not done well in practice. This is the time to make sure key performance indicators (KPIs) are defined for everyone, targets are appropriate and KPIs are used to track and improve.
Belt-tightening helps the company optimize costs, improve productivity and mitigate the impact of revenue declines. However, these measures cannot make up for shortfalls in cash flow if a business is hit by a crisis like COVID-19.
In times of crisis, payments from customers may be delayed, which is even worse if revenue streams are affected. However, employees must be paid, legal obligations must be met, and suppliers who provide critical supplies must be paid on time. There may be small suppliers whose survival is in doubt if cash flow is blocked; one may not be able to apply force majeure clauses to such suppliers. The main thing is to have free cash flow.
Companies must find sources of funding to keep the machine running. They need to find lenders at the optimal price; stockholders could inject more capital. Companies can band together to influence government economic and fiscal policy, which can improve their access to finance.
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It is unlikely that companies in crisis will not properly size their organization, change their policies, revise their structures and systems. All these changes would cause pain and discomfort to employees. Leaders must explain the rationale to people and must be at the forefront of direct communication. They must be empathetic to their individual situations, listen to them, and at the same time must think about the short-term as well as the long-term health of the organization.
Leaders have to show the emotional courage to have difficult conversations and at the same time they have to lift the spirits, build confidence among the soldiers that the organization has a plan to deal with the crisis and they will beat this. Many people assume that the hardest part of running a company is the initial period when you start something brand new, when you are full of optimism and bright hopes for the future. But the truth is something different – many people can start their own companies. What separates the wheat from the chaff is what happens in the future—whether you manage to keep your company running smoothly or not. Here are ten tips to help you keep your business going well far, far into the future.
First and foremost, your company is only as good as the people who work for it. Remember that even though your business was your idea and dream, you need to open up and share it with other people. Make sure your employees feel valued by paying them a competitive salary
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