With COVID-19 still wreaking havoc across the country, especially in Georgia (home of the CDC and, well, me), we have been talking to a lot of our clients and potential clients about using this time wisely. Sure, the economy is going to be messy when this is over. And certainly, worrying about taking care of the basics is important. But now is also the time to be figuring out how to make the most of the situation.
We think the period immediately after a return to somewhat normal will be marked by many business closures. The D&B US Overall Business Health Index is negative for the first time since 2015. Unemployment is at an all-time high. Many businesses are closed due to government mandate and may not reopen.
On the other hand, pent-up demand is growing quickly. Supply reserves are dwindling, even in the consumer’s pantry and workshop. Apparel continues to wear while many are holding off on buying new clothes until they are certain they go back to work when this is over.
Well managed businesses not only have a shot at making it through this, they stand to improve their position. We are not wishing an ill fate on any business. It is just the nature of our “capitalist-light” economic system. Those that are prepared will pick up share from those that don’t make it. They will have a much larger population of candidates to improve their teams. They may find cheaper sources of capacity through equipment liquidation sales. Funds are about as cheap today as they ever were.
For the well-prepared management group, this period may be a godsend. The opportunity to have more demand, better people, more capacity and less expensive liquidity. These opportunities are rare.
But the only way to truly maximize this situation is to have a solid strategic plan peppered with some tactical detail covering emergence +12 months. The E+12 plan is disparaged by some saying” no one can know how we come out of this”. The same can be said for a standard 5-year plan. No one can know how the next five years will turn out. But a good strategy can be adopted that guides and adapts to changing circumstances. Even if you had a solid strategic plan in January, it probably needs to be revisited given the changes happening right now…
The general resistance to strategic planning falls somewhere between “we are going to continue with our current plan” and “we just don’t have time…. too much critical stuff going on right now”. Sadly, the former is rarely accompanied by a documented plan. Without a document, it really isn’t a plan. The latter is usually true inasmuch as senior management is too deep in the weeds because they don’t have a plan.
For those businesses that are being pummeled by shelter-in-place orders, now is the time to strike! A sold strategic plan can be worked on from home. As the discussions are more cerebral and imaginative, they can be broken into a few short discussions each day over a few weeks. Without the day-to-day interruptions, the cumulative time investment is probably shorter as there is no resetting the thought process to “get back to it”. You may want to consult suppliers, customers, employees, business advisors, board members…. Heck, those folks are probably sitting at home, too. And as you find gaps in your staffing, now is a fantastic time to hire new team members. There are a lot of talented folks out there that are now unemployed. You may be able to get them temporarily to help with this project, or better yet, add them permanently to your team.
Title 2 Business Services has clients all over the country. With travel restrictions and many clients being closed due to COVID-19, you would imagine we are doing nothing. Fact is, we are busy as ever renewing our strategic plan, putting tactical plans to work, expanding our network, and meeting new clients electronically. We decided early on to pivot into this situation and make the most of it.
Now is the time. We know COVID-19 can be a terrible illness. But making the most of your team’s time is not a slight against those who are sick. It is a way to fight back at the devastation that COVID-19 is spreading around the world. Title 2 Business Services is here to help you develop your plans, from analysis and research to putting your ideas into a usable plan on paper.