A businessman Dileep Rao has run the business 5 times. With four successful businesses and one failed business. The following business strategies according to Rao’s experience in dealing with a business with high pressure, according to him the following business strategies are very relevant to the crisis during the Covid-19 pandemic.
Save Business From Crisis
The business strategy itself is a business effort in making decisions, policies, and guidelines that have clear commitments and actions. The current business strategy serves to build business excellence in order to achieve goals and stay afloat when Covid-19.
1. Adjust Business Objectives
Business goals must always be to survive. This means being prepared for the worst and always hoping for the best. Neither economists, fortune tellers, observers, or anyone else knows what happened after the pandemic passed.
So, make goals as realistic and conservative as possible. Don’t place expectations that cannot be realized in the current business environment.
2. Project Business Every Week
Everything has changed, especially your business income. Then develop new assumptions such as communicating with customers (if you can). Look for flexibility that your business can do. Make an estimate of at least 13 weeks and update the projection every week.
3. Talk to Business Investors
If you have other investors or investors in your business, tell them. They will accept the worst possibility in the future if they do not hear it directly from you now.
Even though investors certainly know that a business has a problem, telling them directly means that they appreciate the presence of investors in your business.
4. Talk to Alternative Investors
In some cases, you will look for other investors, including companies that provide capital loans for your business. Many of them will help you with more practical but more expensive costs later.
Think back. Don’t just swallow it raw because you’re forced to do it for business. You can also talk with friends or family who might be alternative investors for your business.
5. Cut Employee Salary
Talk to your employees. They may be willing to share the pain of the crisis and help you by cutting employee costs while they are laid off.
However, do not give at all. Remember, employees, are at the forefront of your business. So, let them stay with the business.
6. Cut Overhead Costs
If you have expenses that cannot be returned immediately, get rid of this expenditure budget. But if it is really needed for business, do it after you are sure that the business will start to rise.
7. Cut Research and Development Costs
Cut the costs of research and business development that may be needed for the long term but not for now. Because if you fail in the short term, they will not be very useful in the long run.
8. Perform Barter and Sale-Leaseback
See if you can barter for your product or service and get cash. Sell all fixed assets that have good value, especially if you have depreciated them.
After that, make a repurchase if you want to use it in the future. Negotiating with buyers for delayed payments can also help you get back up.
9. Look for Existing Business Opportunities
Along with all pay cuts, overhead costs, and research, look for new business opportunities that can be done with minimum costs.
An example of a business strategy is that currently, some textile business industries are making PPE and masks for medical workers. See if your business can do the same thing.
10. Look for Emerging Trends
Coronavirus has a long-term impact. Education, courses, and ways to shop for customers begin to be done from home online.
This will make them not only adjust to the situation but also stimulate them to continue to grow in the future. Look for trends in what your business can do to keep your business busy and growing.
11. Merge Business with Other Businesses
Think of a business combination or merger with the right partner. You might get a good price if you are currently able to buy a particular business or avoid bankruptcy if the current business is getting weaker. Strengthening or weakening, both will still have their own advantages.
12. Postpone Products that Bear a Lot of Costs
Don’t provide products or services that aren’t very useful for your business’s current cash flow. For example product A requires a higher production cost than product B, but sales are very small.
Consider which products add more income without spending a lot. Remember, what is a long-term product for business if you don’t necessarily survive.
13. Talk to Someone More Objective than You
Have an employee or someone who is stubborn and can ask you difficult questions. Usually, people like this will give advice which is the best solution for business when Corona.
14. Sort Strategies that Are Beneficial for Business Cash Flow
It’s time to reach the core of your business. Ranking strategies that are useful directly to cash flow with minimum costs.
Which is the short term strategy and which is the long term strategy? Where is the strategy for long-term benefits? Cut everything. As for the short term, you can start an online business strategy.
15. Find Out Current Help for Businesses
Find out what the latest assistance other companies provide or local government stimulus for business. You must stay updated and keep abreast of the business assistance that has sprung up while still considering it. Ultimately, this will help your business to survive.