Are you ready for what 2021 may bring?
It is fair to say that out of all the challenges and disruptions that were thrown upon us in 2020, there were many accomplishments that we achieved which should be remembered and brought into this new year.
A lot of businesses were able to pivot while others had to make a big shift. Our innovation improved, our work relationships improved as we made an effort to keep in touch with our colleagues, and we made a conscious effort to support local. . Some of us made ‘Working from home’ a normal part of life and flexibility in the usual way of work was something we needed to make more prominent.
But let us not be complacent and forget how quickly that last lockdown in 2020 came into place. It was a 9.30 pm news briefing and then the next day Auckland was back into Alert Level 3 while the rest of NZ was in Level 2. The Auckland / Waikato border created chaos and disarray among those living and working in those regions. So, how can we be better prepared and what did we learn from it?
Here are our recommendations on what you should have in your war chest:
A cash buffer of 3 months: Three months of operating expenses held in cash is a target all businesses should be aiming for. Adapting overheads and cost structures can take a lot longer than the requirement to make the change (e.g. the lockdown). Having a reasonable cash buffer gives the business owner time to respond to the issues and make well-thought-out decisions rather than knee-jerk reactions.
The right tech setup: Can you be online and operate your business and manage your team if you are not in your place of work? If the answer is no, make this a priority setup. See it as an investment, not a cost as technology does need to be invested in for it to work for you.
Your Plan from 2020: Did you make a plan in 2020? How did the business manage lockdowns? Look at what worked and what didn’t. Do you know why something didn’t work? So many resources were made available to SME’s to survive and thrive. Have you made use of them and which ones can you have on hand ready.
Have you read our free e-book on Business Plan Basics? It outlines the importance of having a business plan and all the things you need to consider when putting one together. It is also a good idea to consider your options when things don’t work out and you need a ‘Plan B’. Request your copy from us today by emailing firstname.lastname@example.org.
Talk to us if you need help with planning for your business. We have the knowledge and expertise on hand to help you make informed decisions.