You’re questioning your business and its future, you’re right to.
Who could have predicted the arrival of Covid-19 a few months ago? Or its impact on businesses worldwide (apart from your great-aunt who swears she saw it in her crystal ball…)?
More seriously, as a business leader you try to foresee the unforeseeable and plan for the unplannable, but no one saw this one coming. Falling sales, new competition, retaining staff, cash flow, price wars and supply chain issues are some of the common problems faced by businesses, and leaders are being challenged to adapt or face extinction.
So, how to manage it? What are the answers to the many questions you’re asking yourself?
Will my company keep afloat in the next few months?
The number 1 concern is staying solvent. And in trying to do so, business leaders must resolve some immediate problems.
How can I ensure my supply chain? Will my clients keep buying my products or services in the next few months? When will they start again to buy? Will they have enough money?
How can I decrease my running costs? Do I still need those large ‘high-cost’ offices? Do I have the right internal resources to adapt my business?
What do I do about marketing? Should I maintain advertising spend? Do I have to stop everything? If so, how do I attract customers?
By asking yourself these questions, you are fulfilling your role as a strategic leader, but it’s not easy and sometimes you’re the only one wrestling with these problems. Whilst it’s highly stressful, it’s also an opportunity to re-think and even re-invent your business. For a stronger future.
Why having to reinvent your business model now is an opportunity.
Quite simply because you have no choice.
In a standard year, there are many reasons to put off reviewing your business and strategic planning but the arrival of Covid-19 has unfortunately forced the issue for every business threatening their very existence. Adapt or die. And if you’re not fast, competitors will beat you to it.
Now is the right time to start your “business model innovation” or “business model reinvention”.
We mentioned your customers above… but how well do you know them? Are you sure they right ones? Who are your (new) clients? Who are not? What relationships should you have with them? What is your current value proposition and how well is it aligned to these customers? Or do you need a new powerful one? How are you going to distribute your products or services (let’s take restaurants, click-and-collect and takeaway haven’t been as important as today for them)? What key resources, skills, partners do you need to efficiently run your new value proposition? What are the corresponding costs to run this value proposition? What revenue streams will your new value proposition generate?
With all these questions it can be difficult to know where to start. At Ambiquity, we can help review your business model, asking the right questions that gets your business back into a competitive space.
Interested? Get in touch to find out how we can help you adapt.