Slowdown can be an opportunity !! Since I ventured into entrepreneurship
I have been part of one recession in 2012 and probably looking at
another one in 2019-20 with the overall Global Scenario and now with the Corona Virus Impacts it is gonna further delayed. The Earlier looming Global recession was said to get better in 1-2 years but now with the COVID-19 impacts no one has a exact idea of how bad the impacts or how long it would take to recover.but regardless there is not much I can do
about but improve my current setup and look for alternate options to
stay afloat and swing back when the tide turns around. Here are some
ideas that I intend to do.
If you
are a small entreprenuer or an MSME and who cannot actually do much
about what is happening with the economy and who might or already been
impacted from the slowdown then you should not fret or lose hope. It is easy to get frustrated or lose hope with the things happening around us.
So the best we can do is actually
take this time of slowdown as a opportunity and find alternate ways to
stay afloat.Because whatever actions we do now to stay afloat will help
us to grow further when the economy swings back.
Here are some pointers or tips that I intend to follow to get me through the times
Optimization of Variable Costs - As we know the situation is getting worse and going south the immediate action is to quickly cut down on the Variable Expenses and reduce all unnecessary spendings but not at the cost of Employee Morale. Variable Cost Reduction can happen by Optimizing production / delivery schedules, reducing Inventory Levels, better utilization of resources, reducing debts /save up on interest payments, refinancing of loans etc..
Identify & Invest in Alternate Revenue Stream - As the current revenue stream is slowing down or seeing shortfalls it is important to spend time, money to relook at other opportunities which we probably put it away due to lack of time or conflicting schedules. But with the slowdown we actually have time to focus on identifying new streams either totally different or complementing the current business and devise new strategic growth areas like expanding product or service portfolio or expanding to other parts of the state/country or look for different sales channels etc.
Improve Existing Setups & Processes - As there are more downtime and slack period, this is the best time to make better use of the People to improve the current processes and cleanup the current issues. It could be as simple as Automating Some basic processes, Inventory Clean up, Accounts Cleanup, Training People, Process Cleanups, Website Cleanup etc. Most small businesses tend to overlook these areas during the busy times.
Team Communication & Clarification - As things go bad and as we take up various steps to wade through the slowdown it is important we take the team along through the journey. It is important to communicate the intent and clarify that actions that are being taken will help in the longer ride and get their support. Employee Motivation, Morale is a very important factor to consider during such times. Be it putting additional hours or deferring salaries or bonuses due to tough times - all these need proper communication, clarification and commitment from the management. If you are with them during the tough times, they will be with you during the good times.
Identify & Invest in Alternate Revenue Stream - As the current revenue stream is slowing down or seeing shortfalls it is important to spend time, money to relook at other opportunities which we probably put it away due to lack of time or conflicting schedules. But with the slowdown we actually have time to focus on identifying new streams either totally different or complementing the current business and devise new strategic growth areas like expanding product or service portfolio or expanding to other parts of the state/country or look for different sales channels etc.
Improve Existing Setups & Processes - As there are more downtime and slack period, this is the best time to make better use of the People to improve the current processes and cleanup the current issues. It could be as simple as Automating Some basic processes, Inventory Clean up, Accounts Cleanup, Training People, Process Cleanups, Website Cleanup etc. Most small businesses tend to overlook these areas during the busy times.
Team Communication & Clarification - As things go bad and as we take up various steps to wade through the slowdown it is important we take the team along through the journey. It is important to communicate the intent and clarify that actions that are being taken will help in the longer ride and get their support. Employee Motivation, Morale is a very important factor to consider during such times. Be it putting additional hours or deferring salaries or bonuses due to tough times - all these need proper communication, clarification and commitment from the management. If you are with them during the tough times, they will be with you during the good times.
Economic
Slowdowns are part of Business, sometimes it gets better quickly if its
a cyclical slowdown or sometimes it can be longer if its more structural
in nature or something that is totally unexpected like the Corona Impact but as long as we do not have much role to play in the slowdown
the only option is to look this as an opportunity to reinvent the wheel
and find newer opportunities.
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