By Petros Piki, CA(Z), MSc, RPA

"Faced with crisis, the man of character falls back on himself. He imposes his own stamp of action, takes responsibility for it, makes it his own." Charles de Gaulle

The coronavirus has interrupted businesses big and small. No one is immune from the ravaging impact of the dreaded virus. As entrepreneurs we need to look beyond the now and focus on how to take our businesses to the next level. Agility, responsiveness and being action oriented is key during times of crisis like these!

Focus on the Customer – Your Roots and

Remember the how you started the business remember those who stood by you when things were tight. An entrepreneur’s focus must be customers… the customer is the most important part of this business puzzle. Remember Investors, anyone else, will fall into place if what you continue offering great service or product that's serving your customers. No investor will give you money for your business if the core (sales) is not available. Keep those customers you need them to whether the storm and when times are right. You may give in on terms for the long game. One has to have an intrinsic motivation to serve customers, to build products that you feel the world needs — that's what motivates the best entrepreneurs. Don’t be motivated by free lunch unjustifiable opportunities peddled by opportunists cleansing public perception of ill-gotten wealth. Remember its not easy to make money… if it were easy everybody would be a millionaire!

Develop a Robust Liquidity Plan and Implement It

Most business will face challenges with collection of money owed by their debtors. There is a propensity to not pay debts when people are facing a crisis. An entrepreneur working with their accountant need to develop a cash flow forecast prioritizing game changing activities and postponing or parking issues that do not help the entrepreneur to cross the crisis alive. What is your current access to working capital? Are you self-funded? Any reserves set aside for crisis? Answering these questions is critical during times like these. There is also need to negotiate with creditors on workable terms so that you can manage to service your obligations. If you can stretch things 30 or so days, that might make a significant difference. Crisis offers an opportunity of self-introspection and evaluation of whether the expenditure you incur is necessary for your business operations. Avoid unnecessary expenses. Cost cutting is the easiest way to reduce cash flow pressure but always remember employees are Heart Counts not Head Counts, have empathy.

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Prioritise and Don’t Lose your mind

An entrepreneur is inundated with things to do. If one wants to be a successful entrepreneur there is need to understand prioritisation of work. Learn to do one thing at a time and don’t be too hard on yourself. We wrote a blog 

https://www.neverlank.co.zw/blog/post-39a4758d-619d-4a21-aabf-c6be3dc0d935

dealing with issues of the mind. No matter how grave is the crisis don’t lose your mind or bury your head in the sand. Don’t Carry Too Much Weight undertake what is manageable within the confines of your responsibilities and ability

Remember to Always Take Care of Yourself

You have a responsibility to yourself. Undertake exercises, eat health and have fun too. You need to be alive to be able to carry forward with the business. Follow guidelines from authorities on health so that as you fight for your business survival you do not die. Spend quality time with your family these are important support structures in your pursuit of business excellence.

Undertake Scenario Analysis

Scenario analysis is a process of examining and evaluating possible events that could take place in the future by considering various feasible results or outcomes. Develop a range of possible outcomes and how your business will respond to them, this makes it easier to sail through these sad waters. This must be supported by a financial plan that will help the enterprise not only survive but thrive. In all the sophisticated analysis ensure that you do not run into analysis paralysis. 

Rethink Business Model and Adjust Appropriately

All businesses big or small will emerge the coronavirus pandemic changed on own will or because of circumstances. An entrepreneur needs to evaluate their business model and check whether it is still relevant given the new world order brought about by Covid 19. Scan for potential new opportunities created by the crisis. The world is moving too fast and you can only have an impact when you act expeditiously.

Entrepreneurship require dedication, willingness to take risk and above all the willingness to learn. Learn your lessons fast and adapt to avoid demise.

Looking for a strategy expert? Talk to us so that we assist in crafting a winning business plan and pitch! Lets survive together

Contact us today for Consulting| Call +263 718 110 832| Email ppiki@neverlank.co.zw

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Company Secretarial (Including Company Registrations). Tax. Audit. Accounting. Advisory