Current at 11 May 2020
The Government will announce on Monday 11 May 2020 at 4pm if we will be shifting to Alert Level 2, with this in mind, one of the key questions you should be asking of your business is at what rate will your revenue come back? Therefore, at what rate do employees come back and what communication is required now to reset expectations?
Work through the steps outlined below.
Preparing for the Restart
1. Revenue – What communication are you doing now to restart the revenue pipeline under Alert Level 2? What actions can you take now to begin building your sales pipeline?
a. Low Hanging Fruit – Finish the work you had in progress prior to shutdown, confirm existing orders are still valid, confirm payment terms, confirm delivery expectations
b. Fill the Pipeline – What can you do now to build future sales
2. Execute your Alert Level 2 Standard Operating Procedures
3. Supply chain – When this started people stockpiled at supermarket, did you stockpile with the essentials to feed your business and do you need to do this now? Can you secure supply in a timely manner and will the supply chain break down?
3. Employees – At what rate will your revenue come back? Therefore, at what rate do employees come back and what communication is required now to reset expectations?
a. Are your employees assuming they return at 100%?
b. What are the alternatives?
4. Communication with your team and customers
1. Complete an 80/20 Customer Analysis, who are the top 20% of your customers who generate 80% of your revenue? (contact Velocite if you need assistance with this)
2. Understand your customers customer
The planning process should start with understanding your customers, but more importantly understanding who your customers, customers are, as this is what will determine what happens to your revenue.
Who do your customers do business with, will their customers hold, grow or decline in size?
How: Extract a report of sales from your accounting system sorted highest to lowest and identify for each of your customers whether they are likely to hold, grow or decline in revenue.
From this determine your revenue estimates.
3. Where are the opportunities, for example:
c. Consumer behaviour and society values have moved, what’s important to people has shifted
d. Reset and embed new working habits into your business
e. What businesses have benefited from COVID-19? How can you focus on meeting their needs?
4. What is the new normal for your business?
a. Give your customers confidence that they can come in your door
5. Be decisive – If taking action, take it once, communicate well and move forward
1. Based on your cashflow scenarios you should know your funding hole, talk to your Bank about funding options
2. Quick sources of cash (Drs / WIP / Stock / Surplus Plant / Negotiate Creditor Terms)
3. Negotiate sale terms – Deposits and timing of cash inflows
4. Negotiate deferred creditor payments including consideration of a COVID-19 creditor compromise
Further Government Announcements
We can expect the Government to release further details about what will be possible under Alert Level 2, keep abreast of these announcements and interpret what they mean for your business.
If your business is no longer viable be willing to close the doors and walk away but do so through a planned exit that could also involve sale or merger.
Make decisions, learn and make new decisions
Use our free planning templates below:
Retart Planning Template (Level 2) - HERE
Restart Planning Template (Level 3) - HERE
Turn your Restart Plan into an Action Plan - TEMPLATE HERE
If you require our support with you Restart Planning please email our team at email@example.com
Note: Taranaki based businesses may be eligible for FREE business support, see details here.