“The only thing necessary for the triumph of evil is for good men to do nothing” (Edmund Burke). The time to act is now. With the number of positive Covid-19 cases on the rise, the best way to prepare is to prepare for the worst (then, you just ride it out). In a time when there is no playbook, being able to retain forward motion can be the sole differentiator between the drivers and survivors, and the objective remains to take control.
Keep calm and carry on
In all high-risk situations it is essential to remain soberly calm for fear leads to panic leaving chaos in its wake. Today, we are already experiencing the effect of a global crisis. It is important, however, to also remain realistic and to take note of the facts:
– in a matter of days, each business will feel the effects on their trade;
– in a matter of weeks our healthcare systems will be under strain;
– in a matter of months we’ll be dealing with the aftermath, and what that will look like entirely depends on how well we plan.
Plan today for a better tomorrow
It is key for business owners to have a detailed plan for each scenario, in order to optimise efforts and maximise results by taking a III – stage approach:
Firstly, consider what is fact vs fear. Facts backed up by numbers can enable any business owner to create projections and timelines based on the information that is available within the parameters of his own business. It is important to understand how this will affect working capital and cash flow, employees and customers. Having the information available allows you to investigate best practice or case studies of how to handle similar situations allowing you to formulate a plan of action. Also identify the triggers and thresholds which will initiate each contingency plan and the definitions or categories for knowing whether it is successful and when to initiate the next stage.
Having a plan shifts the balance of scale from reactive to proactive and instills a sense of security with all stakeholders involved. Any business continuity plan involves a policy which will include the principles for precaution and response, and will include guidelines for resource and operational management. Once the policies and procedures are defined, it is critical to formulate the following plans: continuous communication; social distancing and remote work; and recovery. Every business should plan as if they are soon to join the StayingHomeClub.
Situations such as these provide an opportunity for innovation. Whether it is a new supplier chain for those in the services, construction or manufacturing sectors, delivery options for businesses operating in restaurants or retail, or virtual engagements for events and networking, being creative in your approach to running your business is key.
Make no mistake, COVID-19 has the world in a state of panic. Social media combined with sensationalism is likely the reason it is over communicated and amplified, but the data shows that the earlier precautionary measures are activated, the lower the impact on the health and economic systems. We find ourselves in a black swan event and no one truly knows how this will play out or how long it will take. Due to the unpredictable nature of the situation and the severity of the potential consequences, business leaders need to put themselves in the driver’s seat and with the benefit of hindsight, this will be the moment they went from a victim to victor. We have the opportunity and the responsibility to prevent this.
Stay tuned over the next few weeks to find accurate information, guidelines, tips and updates for every business owner as we forge our way forward. We’re in your corner every step of the way.
Written by: Erin Louw, Retail Capital Chief Brand Officer
Since 2011, we have provided businesses with innovative, flexible and convenient alternatives to traditional business funding. Business owners still identify access to working capital as the single biggest challenge that they are faced with. Being responsible for 50% of the country’s GDP and contributing to over 65% of employment, we are devoted to partnering with small to medium-sized businesses to grow the South African economy. This is where we can help and we are proud to have partnered with thousands of SMEs in providing fast flexible business funding. Start growing your business with Retail Capital Business Funding and Asset Finance today. Get in touch to learn more.