The Path Forward For Small Business Owners
Here are Denver Business Coach we are constantly in conversations – with our clients, with strategic referral partners, with other business owners and advisors.
This week we have seen a shift in terms of what those conversations are about, and we wanted to share this shift with you. Looking back, the last two weeks have been a time where many business owners have been in shock and disbelief about how quickly their entire business landscape has changed. Most of the focus was on rapidly adjusting to the immediate changes in response to the coronavirus situation.
This week we are seeing the conversation focused on “what is the path forward for small business owners.” Where do we go from here?
For many business owners that means reinventing their business, innovating their business, or at least make some significant adjustments.
Yes, you do need an immediate plan to navigate the next six to twelve weeks, that is critically important, but more than that you also need to think about how to set up your business for success once the recovery period takes place.
For many business owners this is a time of incredible opportunity. With our clients we do simple yet profound exercises like a SWOT Analysis or reworking our Business Model Canvas.
We look at what, given the current circumstances and our best projection of the future, are our strengths, weaknesses, opportunities and threats. Those are very important strategic conversations that every business owner needs to be involved in at this point. How you utilize these next 6 – 12 weeks, is going to make all the difference in how well your business is going to do in the future.
After this phase of “creating a plan”, we are going to enter a phase of execution implementation. Business owners will have to get to work, all-in, and recreate their business as quickly as possible. During this phase the focus will be on operating a very lean and agile business. Cash flow is going to be one of the most important areas to focus on.
There will be a lot of lessons learned, and a lot of examining what expenses are truly providing a ROI to the business. Every line item on the budget is going to be evaluated on whether it is helping to move the company forward or not.
Towards the end of the year we will see that businesses that had a winning strategy, that worked their plan are going to prevail and start out-performing the businesses who did not take the time to innovate and rethink their strategy.
We are now also seeing the importance for business owners to continually be working on building the value of their company. There are many business owners who were planning to sell their business in 2020, but are now realizing that they won’t get the price they had hoped for, and need to wait before they can cash out.
More than ever acquirers are going to look for businesses that are set up correctly, that have positive cash flow, ideally recurring revenue and a scalable business model. Those are all areas that business owners need to be working on now to get to the point where they have the freedom to sell their business, or at least know that they could.
We at Denver Business Coach are excited about the opportunities ahead and engaging with our local business community in strategic conversations. Now business owners need sage strategic advice more than ever.
If you think you could benefit from working with a business coach, please reach out to us to schedule a Discover Session.
If you are looking for relevant business resources related to the coronavirus crisis visit our dedicated page here.