Nearly 100,000 companies have permanently closed their doors due to COVID-19 pandemic. And since there is no end in sight for a return to normal business, this figure can be intimidating for anyone considering starting their own business or for entrepreneurs hoping to survive the following year.
If the COVID-19 pandemic has taught us one thing, it is that we cannot predict the future, but a little preparation can do a lot.
So what should you include in your business plan to make it pandemic-resistant? In this post, we will cover the essentials. But first, here are some important things to consider when creating your business plan. The main features of a good business plan are:
Elements of action
Create a Plan For the Transition To Distance Learning
One of the biggest obstacles businesses have faced is moving their business from the office to the outside. While some industries (such as technology companies) have been able to adapt with relative ease, others have had difficulties.
When evaluating your business or start-up idea, ask yourself how you can consider becoming virtual. Consider employee safety and health. Your team needs to be as efficient remotely as it is at the office – with the exception of certain areas such as restaurants and some stores.
How can we ensure that this is the case in the future? First, determine the steps needed to make the transition remotely. Next, identify the formal processes and protocols of remote work to ensure success from home. For example, are you equipped with the right collaboration tools and file-sharing platforms? Do you require employees to use video conferencing apps?
With the right remote work plan, you can even offer opportunities to work from home as a reward for hard work or as a benefit for the whole company. After all, the ability to work remotely is one of the most sought-after professional advantages.
Create a Strong Budget
Another challenge for businesses is financial instability during the pandemic. So much so that many small and large businesses have closed their doors for good. According to Yelp data, about 60% of businesses that closed in response to the pandemic have closed permanently.
What can you learn from these companies? You want to do everything you can to prevent the same financial crisis from reaching your business in the event of a pandemic, natural disaster or other economic emergency.
During the pandemic, business leaders who understood that money is king survived.
According to Jody Grunden of the Summit CPA Group, companies should save 10-30% of their annual revenues or three to six months of expenses. Having a cash cushion can mean the difference between covering your operating costs and making another statistic.
If financial planning is a key part of any business plan, it is even more important as we emerge from the pandemic and prepare for the future, to ensure that we can withstand something similar in the future.
Having a Spirit of Anticipation
As always, when you create a business plan, you want to look to the future, not just the year you plan. So when you’re working on your plan for 2021, don’t fall into a tunnel. Think about the impact your moves could have on your business in the next five or even ten years.
As you define your vision, initiatives and strategy for 2021, it’s important to keep your business open and find creative ways to generate revenue. However, you also want to ensure that you do not take steps that would completely compromise your business objectives and long-term stability.
When making decisions based on your current business situation and the economy affected by the pandemic, take steps that will help your business get back on track – whether it’s providing incentives to bring customers home or restructuring certain services. How can you make up for losses, bring your staff back to normal capacity, get employees back to the office, etc.
The answers to these questions will help you make the best decisions for your business, now and in the future. Also pay attention to trends in your regional and global economy. Major changes in the global economy and consumer behavior can be good indicators of what to expect.
Developing a thoughtful business plan for 2021 is the first step to making your business pandemic-resistant in the years to come. Be prepared to rotate as needed and make adjustments throughout the year.
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