All advisors and lenders will ask you to develop a #business plan. So far, so good. But what happens when your business plan itself, well written, well thought out, needs a plan to save it?
The uncertainty provided by the constantly evolving strategies applied by states to "combat" the challenges created by the #Covid_19 pandemic is not helping either. Some of the #strategies have resulted in closed borders, restricted flights, non-admittance of tourists, banning of #alcohol and #tobacco sales, restricted dining experiences and the list goes on.
So what alternatives are there?
Existing businesses need to quickly understand what are their fixed costs and how these can be covered by break-even sales. In either event, where fixed costs can be reduced such as energy usage flat fees, telecoms rentals etc. these need to be well managed. The matter of personnel cost should however be the last to be considered due to its strong human impact relationship to the business from staff loyalty and quality of life perspective. Having said that, the matter of "perks" should be re-examined and where possible discussed with teams as to the need for "business" survival.
Another area of urgent action is to see how "local" markets can be serviced as if truth be told in many business including tourism, this was an under-valued and under-serviced market that has now become very important to sustainability.
The conversation continues and guidance can be had from consultant@rdjconsulting.co.za or get to know us better at www.rdjconsulting.co.za