Leading through uncertain times requires creating certainty in the face of the unknown. Whether uncertainty is coming from market downturns, global pandemics, national elections, or any other source of upheaval, you can create certainty by “pre-thinking” about how to protect the health of your business.
Business health comes from the ability to weather a drop in business activity for an unknown duration. Being able to withstand any impact relies on proactively managing cash. The three levers to pull are:
- Phase One – Preemptive Moves: Preemptive moves are initiatives you can take today to lock in revenue or reduce expenses with no direct harm to the business. How can you aggressively acquire new customers, retain your big accounts, and shore up accounts that may churn?
- Phase Two – “What If” Moves: “What if..” moves are actions you will take if pre-identified trigger events occur. For example, a trigger event might be a double digit drop in revenue over three consecutive months. Do you need to shift OR dramatically change your strategy?
- Phase Three – Defensive Moves: Defensive moves are as they sound, last line of defense to maintain business continuity. How can you cautiously manage your expenses?
We’ve created a canvas for you and your team to get prepared. The sections guide you through identifying strategies and actions to take in three different phases based on financial performance.
Please note, your situation may require taking the ideas from the canvas and building out a full-blown financial analysis and action plan. You may also find this canvas to be sufficiently detailed enough to guide your business. Use what is best to keep your business healthy and your team productive as you weather any storm with certainty and confidence!