The effects of the pandemic are still with us even as the additional government resources are drying up. Just because your company has survived this far doesn’t mean it will into the future. You must also know your business’s strengths and weaknesses, so you can pivot your business model to realign with those new opportunities.
“SMBs are more vulnerable to events beyond their control, but they can also respond more quickly to seize new opportunities,” states Seth Morgan, MLA Founder, and CEO. “You must communicate openly with customers and suppliers to do that.” MLA provides outsourced Finance, Strategy, and Service professionals to small and mid-sized businesses. Contact us to learn more.
A solid business strategy is a necessary place to start. But it must rest on an airtight and flexible financial strategy. That’s because your decisions will only be as good as the information you base them on. “Every sound business decision must be made with reliable financial information that can respond quickly to dynamic market changes,” Morgan states. “But rarely will the information you have now be enough for the unexpected decisions you will face down the road.”
That’s where a robust and well-maintained financial system is essential, and the expertise to put it to good use. “If your system is set up correctly, a skilled CFO, using sensitivities and dynamic planning, can get you the information you need,” observes Morgan. “That allows you to break down your resources and reassemble them in a way that lets you overcome the immediate challenge. Then you can move on the opportunities these disruptions always create.”
The first objective of a small business is to survive. Only with that resiliency can you find new and innovative ways to serve your customers, employees, and community. To survive you must have a clear idea of what can put you out of business, and how to see that coming.
“In the early weeks of COVID, no one knew what to expect and long-term plans went out the window,” Morgan remembers. “But the fundamentals don’t change. You still need to manage your cash and prioritize the areas and relationships that are essential for survival.” Many MLA clients came out of the shutdown with a stronger sense of what they can do, and better positioned in their market.
We all hope to never see another global pandemic, but those types of disruptions will continue. The investments made in a business strategy based on a strong financial understanding have paid off. And as fortunate rewards the prepared, they will continue to pay off into an uncertain future.
Are you wondering if you should pivot your business model? We can help with that. Contact us to learn more.