Sunday, May 9, 2021

Resetting and restarting your business - some considerations

The pandemic has taken a toll on everyone globally. For many, we have been kicked in the teeth one time too many and it has stirred up wide and varied emotions.

The environment has sparked so much uncertainty that many are distracted from planning and developing. What do I mean? We are so busy paying attention to the news in its various forms, that we are not doing what is necessary to make the news.

Too many are waiting for ideas to come since they are in varying states of depression. People who are in charge of technical assistance entities are stuck in suspended animation with their creativity shot.

This is an environment where one needs to squarely examine the situation they are facing and decide on what is required to win. How does one become a winner when everyone seems to be looking up at zero. Put another way, we are trying to climb out of the basement and there are no stairs nor pathways for escape.

What can we do?

  • Examine the remnant of our businesses and see what can be salvaged. Within our environment within which we have to function, how can we offer help in a manner that allows us to eke out a livelihood while assisting others in being able to sustain their lives.
  • Identify how vulnerable our markets served were and look for where opportunities lay in areas we may have serviced infrequently. Do they offer enough of a market to be served where we can make a profit?
    • Remember to look for every available opportunity to expand outside your immediate area/country. Often when your market is slow another one is busy and booming.
  • We must recognize that it is not just enough to remain operational in business but we must engage in an activity that results in a benefit that SMEs seem to be afraid of - profitability. We must become more sophisticated as business people and use the education available to us and grow the value of our businesses.
  • As business people we need to build up cash reserves that enable us to replace aging assets and pursue opportunities for expansion without having to get the assistance from the banks who seem intent on making business people jump through hoops since they quite casually say they don't understand our businesses, they are in banking and finance.
    • Recently, a client needed $1 million in financing, presented a business plan, and documentation showing that there was over $2 million in business to be done within a short time frame and still was declined financing.
    • More businesses are paying for professional help to help them realize their business goals and are still subjected to the old practices of revenues being "dumbed down", a practice where submitted revenues are further reduced and then when the various accounting ratios are applied the business is no longer attractive according to the numbers returned by the ratios.
  • Use your networks, too many business people become involved in networks but do not know how to utilize them. Remember if you don't blow your trumpet there's no music. Who do you need to meet that can help you get the required business to facilitate growth, and do you know anyone that can make the connection for you?
Join us on Telegram concerning what you can do to enhance your business. If you are on Telegram follow us here: some new things are going to be taking place there soon to assists small and medium sized enterprises. Follow us at our other social media links can also be found there.

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