Tuesday, January 26, 2021

COVID-19 Changes Business Behaviour

We are in Normal.  There is no 'new normal' and we are certainly not going 'back to normal'.  COVID-19 has changed business behaviour.

That's the hard truth. The business owners I've spoken to over the past year have worked hard to adjust.  The most successful ones adjusted quickly...in some cases, pivoting completely away from their core business system in order to survive.  They quickly reset their normal.  

What do business owners need to focus on in this pandemic? 

  1. Cashflow:  Know your revenue in and expenses out.  Pay a very close eye on your forecast sales, look for risks;  Know what your fixed and variable expenses are with a focus on what you can cut and what you must have.  
  2. Response:  Run multiple scenarios on revenue and expenses.  Do the 'worst-case' scenario exercise. Act quickly.
  3. Reserve:  Set up and keep a reserve cash fund to use to fund your business for a period of time...the longer the better.
  4. Adapt:  To your business situation;  To your employees;  To your customers.
These are things every business owner should do pandemic or not.  But driven by the rapid changes in buyer behaviour, it is even more urgent!

COVID-19, pandemic, business, consumer, small business

This Infographic cites US data but it applies to Canadian consumers as well.  We are all anxious about our inability to forecast and predict confidently.  We are in survival mode. We all feel caged.  Yes, COVID-19 has changed our behaviour...for good!

Until next time...
Chris Morales, Toronto, Small business, Marketing

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