7 min read

COVID19 has presented one of the biggest challenges to humanity in the current times and has impacted what we consume and how we go about doing it.

It this has opened up opportunities for people in the supply end for sanitisers, masks toilet papers ( are we crapping more?), books, social media, online conferences etc., it has also created challenges in the meat, farming or production worlds. It has caused supply chain challenges at the both at pickup, delivery and click and collect end.

But we are not going to talk about it. We cannot magically solve all the problems right now, what I am sharing with you is something I identified after having a conversation with numerous business leaders. These are some quick takeaways that are be helping the businesses and can continue so.

The mantra that resonated to me was “rationalisation”. Let me share with you how it plays out.

Take a recap of a portfolio of stuff you sell

This is something large businesses are accustomed to. Businesses love creating a suite of products, an array of brands and managing them. There are teams behind it, There comes a time when the product or brand loses it shine or fails to live up to expectations but the passionate creatures we are, we hold on to it.

The ideal way out of it is to arrange the products in the order of profit they are generating and flag the ones that are trailing behind. I know sometimes the revenues are going through the roof and we think one day those products will turn a profit. Remember revenue is not equal to profit. There is a cost of doing business. A restaurant chain was very happy that by shifting fish food to burgers and by reducing price on burgers they seemed to be winning. Revenue was going up significantly. Less they did know that their cost to serve per plate remained the same and was eating into the profits created by the products they were famous for. Be mindful of the long tail of products you may not need all in your portfolio to run a successful business.

The second aspect you need to pick is the brand. The brand is the identity of a business or the range of things you are famous for that makes selling possible, particularly when business is moving online. You can’t imagine going to McDonald’s and ordering a family size vegetarian pizza or let alone any pizza. That said within the brand there can be a portfolio of brands or sub-brands. Arrange them in the order of impact they are causing.

Third aspect you need to look at is the trend, is the profit in the upward trend or downwards. You only need to focus on the top products showing profit that also has an upward trend.

Fourthly, You need to ascertain that impact of a particular brand in the portfolio is showing an increasingly positive impact. To capture it you need to understand the outcomes of your actions in terms of market interaction market attention and market intention.

Think about actions you can take

Once taken a recap, you need to focus on retiring or reinvigorating the products and brands that have fallen behind.

Look at the sales numbers, staff supply chain and finances and perhaps consider changing your business model to augment online.

Clear the inventory, perhaps by discounting, of slow-moving or obsolete stock because it is also likely to hold up your money.

Predict the stock requirements based on the current environment and not based on what you always have done. There are a lot of businesses who tend to automate the business this is unprecedented so may not be the best time for extreme automation,

You can speed up your invoicing and request those who owe you to pay up.

Seek cash support that is available and that you can take reasonably.

Think about your and your client’s budgets
Business budgets are created for the current purpose with the view of the future.

The focus should be on profit and not revenue unless revenue is able to sustain the core image and profit to sustain you till good times return.

Accounting principles predict the future based on the past however the current COVID situation has been unprecedented or to get the information that may be useful for any measurement purposes you may have to go back 100 years but many of the businesses that you see now did not exist and the way business is being done. Perhaps you also know that 90% of business do not exist in the past 10 years.

Monitor what is being invested in

Photo by Christian Dubovan on Unsplash

There has been significant growth in investments shown by governments, healthcare and philanthropic organisations. That said seed-stage funding and exists is on the decline.

Other than the financial numbers, share price fluctuation trends are moving based on COVID numbers, the success of potential treatments and how countries are leveraging their economic powers to support or exploit others.
COVID19 has also exposed the dependence cycle on manufacturing or part of the supply chain process in the economies and the countries.
Is your business dependent on imports? From a specific country? You need to reconsider how you are going to reshape your business.

Keep an eye on consumer trends

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Photo by Burgess Milner on Unsplash

We see individuals locked in and frustrated at homes, consuming profoundly more digital content which has led to hyper-growth of streaming technologies.
We are spending more time on social media and advertisements on social media than on print. We no longer want to touch cash which has increased the contactless payments. Who is spending and on what and within what income brackets figures are now available in most countries.
Patients prefer to talk to their doctors on the phone unless there is an examination required. People are cooking more at home so there is a greater focus on well tasting and healthy recipes. Dogs are getting walks at least twice a day. I don’t know about others but it is keeping my lawn tidy.
People are fearful so that are investing more time on their well being. . Partners being locked in together now have a chance to reinvigorate their relationships.
Where I live in Victoria, Australia people are now required to buy in the neighbourhood so branding has become more important than ever.
As we have limited fridge space we are wasting less and of course this has made us more environmentally conscious.
Home delivery of products have exponentiated and of course unless you are a hoarder of food you are more likely to make a list of what you are going to buy.
We are spending more on groceries than or buying new cars as it is likely to stay parked ( of course it depends on the region you are in) We are engaging with others online so sale of cameras and associated equipment has gone through the roof. You may need to have a deeper look at the situation in your area.

Breathe

Photo by Motoki Tonn on Unsplash

It is not the end of the world. Humanity has survived greater challenges based on.

If you secretly think that doom’s day will be an equaliser, then don’t as it will not help you win either.

Stop endlessly doom scrolling the news you may not be able to find an answer there. Ensure your time spend on negative news is quarantined as it could be causing emotional harm and negatively impacting your immune system(I am sure you know that already if you don’t, it should not come as a surprise to you).

You need to stay informed about your work, the welfare of your loved ones and news but beyond that, you don’t need to be anchored to your devices.

Somehow in the current world when we identify ourselves with the work we do, staying anchored to devices is a symbol of connection with work. You are who you are and not what you do. You need to quash that wrongful identity. You are more than what you do. Much more.

Talk to others who are positive or need a positive message that you can spread. Take long nap and sleep, sleep deprivation has been a common day challenge for more than half of adults worldwide. Don’t spread the virus, spread the message of hope and positivity.

Positioning in COVID times.