How To Prepare Your Business For Uncertainty
February 26, 2021
Preparing for uncertainty seems like an impossible task – how can you prepare for something that you don’t know is going to happen?
With the current global pandemic causing a great deal of uncertainty for business owners, it is important to consider all potential scenarios and prepare for your business’ response.
In doing this, you will feel at ease knowing your business is prepared for the worst.
Keep Up To Date With The News
Whilst we cannot predict the future, we can do our best to anticipate it. Keeping up with the political, social and economic state of the world can help you react quickly to any changes that may impact your business.
In addition, having a basic knowledge of relevant economic indicators can also help you predict any economic changes that could have an impact on your industry. By being alert to any external impacts on your business, you can prepare and react quickly when the unexpected occurs.
Prepare For Multiple Outcomes
The only way to truly prepare for the unexpected, is to have plans in place for all possible scenarios for your business. This may mean creating plans for recessions, changes in consumer behaviour or needs, natural disasters, or pandemics.
Businesses should now be creating strategies to prepare for uncertainty caused by the COVID-19 pandemic, such as accounting for a full lockdown, partial lockdown, or a complete removal of restrictions. By having multiple plans in place, you can be confident in knowing your business is prepared for the worst-case scenario.
Review Your Business Strategy
If COVID-19 has taught us anything, it is that the unexpected can quickly upheave your entire business strategy. It is always a good idea to revisit your business plan and tweak it where necessary, but the uncertainty of COVID-19 may mean that much of your business plan is not relevant to the current situation or that your goals for growth are put on pause.
It may be wise to adjust your business plan to account for the possible scenarios that can occur during the pandemic, and search for new ways of growing your business. By reframing your business plan, you can search for ways to grow and thrive in the face of uncertainty, rather than just survive it.
Know The Key Numbers In Your Business
In the midst of uncertainty, it is important to know your key financial numbers and business KPIs to know exactly where your business stands at a glance. Knowing how many sales you make in a day, the size of your customer base, or your cashflow projections can quickly indicate when your business is declining.
This allows you to recognize immediately when something is not quite right, and you can spring into action early.
Diversify Your Offerings
As we saw from COVID-19, in the face of uncertainty your business may need to pivot at a moment’s notice. By diversifying your business’ products, services, and value to customers, you can provide other means of making an income if you cannot continue with your standard business operations.
This could include offering delivery, creating an online storefront, developing the ability to offer services remotely, or perhaps something new entirely. Even without the implications of the COVID-19 pandemic, it is always wise to have several different ways of generating an income for your business.
Preparing for uncertainty is an important process in your business that can help shield you from the impacts of any unanticipated events.
By having a plan in place for multiple scenarios, you can act fast when these situations occur and protect your business’ future.
Want some additional support and advice? Our experienced Business Advisors can help. Book an appointment here.
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