COMMUNITY
Business Strategey: A Roadmap to Success By Dr. Lorneth Peters | Business and Information Curator During the last ten months, COVID-19 has caused personal and business challenges. Every American was affected both directly and indirectly; Loss of life, hospitalized family members, and business closures have rocked the very foundation of the American dream. Small businesses have felt the most significant impact of the pandemic.
businesses have felt the pressure. As small businesses continue to embrace technology, the looming question should be, “how does technology help solve problems in my business.”
According to research done by CBIZ Main Street Index, over 40% of companies have been affected, and a Yelp report shows business closures continue to increase nationally. The effects are felt across a multitude of industries. The Payroll Protection Plan was a necessary lifeline in assisting with employee retention and other business necessities. However, there are still insurmountable challenges on the horizon for business owners as they prepare for recovery and the “new normal" in 2021.
PREPARE A ROADMAP TO SUCCESS Many entrepreneurs are still in the business planning mindset and, at times, ignore strategic planning. The latter planning is needed in the wake of COVID-19 and its aftereffects on the business community. Traditional business planning is best when operating in a stable economy with little surprises. In contrast, strategic planning works best during uncertain times. Having a long-term goal is essential when strategizing but also being open to constant change is imperative. Strategic planning includes learning from the past, committing to changes, and quickly evolving when necessary. Bob Frost of Invictus Consulting LLP says it best, “Strategic planning is a roadmap to get from point A to point B. It is a way of establishing goals for a business and determining what functions need to happen to reach those goals.”
Here are strategies all businesses should consider in preparation for 2021: REFLECT Many business owners continue to think about what is next, but few take the time to reflect. The practice of reflecting forces us to examine the details we missed due to being busy. It allows business owners to slow down, and it provides an opportunity to take a telescopic view of 2020. This process can only be effective using "what" questions more than "why" questions. According to Tasha Eurich, “why” questions highlight our limitations and stir up negative emotions, while “what” questions help keep us curious and positive throughout the reflection process. For example: What did I enjoy most about being a business owner this year? What changes can I make to maximize my business offerings? What do I think about first thing in the morning, and what do I think about at night? What does my existing cash flow at present mean for my business? What worries me most about the future of my business? 40 • CLARKSVILLE BUSINESS JOURNAL
EMBRACE CHANGE Consumer behaviors will continue to change. According to a McKinsey & Company report in October (2020), there are a couple of evident changes in consumers, worldwide. Shift to value and essentials: consumers continue to spend more on necessities such as grocery and prescriptions and reduce spending on most discretionary items. Additionally, consumers focus on businesses that are providing value. Are you making the lives of consumers easier, happier, healthier and are you community-minded? Flight to digital spending: Consumers plan to continue purchasing items online to avoid illness and save time in the age of COVID-19. This means investing in curbside services, creating or making needed changes to websites will provide customers easier access to purchase products. The need for technology has accelerated, and small
Exiting 2020 and welcoming 2021 involves business owners being more proactive than ever. Taking the time to understand consumer spending habits is vital. Additionally, technology should be a vehicle, not a hindrance to small business success. Finally, being strategic will prepare business owners for the ebb and flows of an unpredictable year. For more information, contact Dr. Lorenth Peters 931- 221-1370
