Covid-19 is one of those unforeseen circumstances that has affected a lot of industries with far reaching consequences; but how do we adjust our projects and contracts to protect our future.
Covid-19 may be unprecedented but it is not unusual for projects to encounter delays, stoppage, supply chain issues and cancellations. The question is how do we rationalise our activities to protect cash flow, resources and the potential future of the project.
The way I see it, there are three options businesses have to manage the situation:
Hibernate
Scale Down
Pivot/Diversify
Let's look at each of these in more detail.
1. Hibernate
“Live to fit another day.”
If you are a small business with not a lot of employees and can halt your outgoings and activities, in order . The hazard of this approach is the uncertainty of when things will pick up again.
2. Scale Down
This process can be painful, as it means you have to sacrifice or let go of people, projects or resources you have nurtured. But for some businesses it is necessary to cut your losses, hold on to your capital and live to fight another day. Reposition your thinking, evaluate what is essential to survive and put down what you can do with out. Business is not personal.
3. Pivot/Diversify
“Adjust your business to fit within the new social distancing guidelines.”
In the times of Covid-19, there are some industries and businesses that will not only NOT be affected but thrive as a result. Some of these industries are the essential services, such as supermarkets, service stations, allied health and banks.
Does your business fit into one of these categories? Can you adjust your business to fit within the governments social distancing guidelines?
And last but not least, don't Give Up
Remember, you are not alone. Join a business forum, chat to people in similar industries as yourself. Share tips and strategies for weathering the storm. Make use of the government support packages and services. Good luck!
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