Times have changed – so your Business Strategy should too!

As the phases of the COVID-19 pandemic progress, now is the moment to invest your lessons learned back into your business to reset your business strategy and build resilience.

Staff/talent shortages and supply chain issues dominate the media headlines daily at the moment as the impacts they’re having on many Australian industries and their knock-on effects to consumers are notable.

The height of the Pandemic wrought havoc on many businesses and industries over its nearly three-year course but, even though the worst appears to be behind us, the impacts of COVID-19 will continue to be felt in the months and years to come. 

The reality is that, for the majority of Australian businesses, the times have changed and they’re going to need to implement operational changes in order to successfully transition to life – and business – beyond COVID.

What’s changed

During Covid we saw low interest rates, consumers benefitting from government support packages, businesses benefiting from government stimulus packages, and a consequent increase in domestic spending across industries. What we’re seeing now is the perfect storm where government support is waning, businesses are struggling to meet customer demand due to the talent shortage, interest rates are going up for the first time in more than 11 years, and the reopening of our international borders is detracting from local spending.

Is it time to change your strategic plan? We think – yes!

It’s quite likely that you’re going to need to make some changes to the way your business operates post-COVID. But change without strategy is chaos! Whatever industry you operate in, it’s time to review and refresh (or establish) a strategic plan for your business. The financial results you’ve achieved under COVID conditions won’t necessarily form the basis of your business strategy moving forward. As a start, consider where you are NOW, WHERE you want to be in three years’ time and HOW you’re going to get there.

What questions should I answer when I’m formulating a post-COVID strategic plan for my business?

Business profitability
Question the validity of your financial projections:

  • Do you have a clear picture of where recent profitability has come from, and is that sustainable?
  • Have you undertaken a customer profitability analysis?
  • Is your business agile enough to deal with any changes?

Key business risks
Question the operational sustainability of your business:

  • Has your business become more or less stressful to run?
  • Do you have a documented strategy with team buy-in?
  • Do you have a staff/talent retention strategy?
  • What business issues keep you up at night?

Business exit strategy
Think about your departure from your business and how this would look on your terms:

  • Has the value of your business increased in the past five years? (Buyers don’t just pay for profitability.)
  • Has your business become more or less reliant on its owners for its successful operation?
  • Would you buy your business without an overhaul?
  • Do you have a plan for the future of what may well be your family’s biggest asset?

Retirement strategy
Think about your life post-business:

  • Will your business provide enough income/capital to finance your retirement?
  • What drives your business’ value?
  • In retrospect, will you have any regrets about your business strategy?
  • Are your business and personal financial strategies aligned?

How can I prepare my business to operate post-COVID?

You wouldn’t embark on a road trip without making a plan, so why would you voyage into this new – changed – business landscape without having a strategic plan in place?

Our team at Highview are here to help – and forward thinking is our forte. This crisis has created an opportunity to reset some of your goals and ambitions and it’s time to ask yourself, ‘As we recover from this crisis, do we want to be different — and if so, how?’ – chat to one of your Highview local experts today. Your Accountant can assist as well as our team of Financial Planners, Finance & Insurance experts!  

Source: garter.com/en  

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