Since the initial days of commercial lockdowns in America due to Covid-19, businesses have been challenged to stay afloat. The US Census Bureau surveyed 100+K small business owners to see how their operations had been impacted by the pandemic. Of those surveyed, an average of 31.4% said that it would likely take at least 6 months to return to their regular levels.
Many owners start out with business plans that are valuable resources particularly when events, such as Covid-19 occur. Those owners who developed a thorough business plan often find that they are in a better position overall today. These plans are not simply important when it comes to securing loans and investors; they play an essential role in selling your business in the future. This makes them a sort of exit plan that may be critical during unusual times like a pandemic.
Plans focus on what is needed to operate the business during good times, as well as bad times. They help you develop strategies, which allow you to prepare for tomorrow and whatever it brings.
Let’s take a look at some of the issues that business owners are able to overcome with a solid plan in place.
What is Your Business Outlook Post Pandemic?
As mentioned, the pandemic has had a lasting effect on every segment of life. This is something that business owners in different fields and industries have never faced before. The US Census Bureau survey results also showed that 44.9% of businesses experienced a serious disruption in their supply chain. Post pandemic supply activities have resumed in most areas, business plans now must factor in waiting times for products and services and how their customers will respond.
Should You Rethink the Business Model to Steer Growth?
When your business was simply a startup, you probably thought you knew how the model would work. Business plans take into consideration the market, field, and industry you function in.
Today, owners and managers are rethinking models and ways to experience growth. With social distancing and lockdowns, online sales are important. WeForum points out that financial sustainability in any form is critical. Ask yourself if there is a way to pivot and adjust your current business model to find new opportunities and growth.
Pandemic Survivals May Position You Well to Sell
Once you have an adjusted and solid business plan in place, consider your exit plan next. Having an exit plan does not mean giving up on your business today. It simply means that you are planning ahead for future opportunities such as retirement or investing in another business venture. The goal is to nurture your operations despite the effects of Covid-19 so that growth is possible, while also putting yourself in the best position to receive full value for the company you’ve built once you sell it.
As experienced business brokers, we have seen how business owners benefit by building the right business plan today to exit their businesses tomorrow. For some business owners, the time to exit may be now. If you’re considering selling your company, start with a free conversation about your business & goals. An expert will assess your business assets and provide guidance on how to make it most attractive to buyers.