Evaluate the state of your business operations
Following the financial health check, you should evaluate the effectiveness of your current and future business operations more broadly. In evaluating your business, you should consider:
- whether your customers are ready to spend again
- whether you have the right staffing levels to support your business in the recovery
- whether your online presence is strong
- how to improve the efficiency of your business
- the ability of your suppliers to meet your requirements in the recovery.
Questions you should be asking yourself include;
- Are your key customers recovering?
- Do your staff have the skill set required to complete their jobs post the crisis?
- Do you have the right level of staffing for your business post the crisis?
- Do you have the right mix of staffing for your business post the crisis e.g permanent, part-time, and casual; can staff move to different teams?
- Is your online presence sufficiently strong to meet increased online demand?
- Do you have the right technology in place to service customers in the post COVID-19 environment?
- Do you and/or your staff need to improve their knowledge of your existing technology to make the most from such technology?
- Do you and/or your staff have sufficient knowledge of emerging technology to assist you to make the right business decisions on that technology?
- Are all your assets operating to maximum efficiency?
- Was the business holding excess or aged stock?
Evaluate how your market has changed
In addition to looking internally, you should also evaluate how your market has changed. For many businesses, COVID-19 may have triggered or accelerated changes in your market and many of those changes will be permanent.
In evaluating your market, you should consider:
- how your customers, suppliers and competitors are going, as the recovery will not be uniform
- what changes have there been in what customers demand and how they purchase
- opportunities to change your business to meet the new environment.
Questions you should be asking yourself include;
- Are your customers recovering?
- Are your competitors recovering?
- Are your neighbours recovering?
- Is your industry recovering? Your industry association may have some information
- Are you noticing changes in the products or services your consumers are purchasing? Check that against industry trends
- Are you noticing changes in how your customers are consuming your products or services? For example, purchasing more online. Check that against industry trends
- Are you seeing changes in your customer base?
- Do you expect your current product or service offerings to remain relevant post COVID-19? Check against industry trends and competitors
- Are there new products or services that you would like to offer? Check against industry trends and competitors. Ask key customers and staff
- Can you see any emerging opportunities for your business following the crisis?
- Are there opportunities to diversify your business?
- Are there opportunities to consolidate your business through a restructure?
- Do you know of any emerging threats to your business, such as new competitors, changing consumer behaviour and inadequate online presence?