2020 (so far) has been the year of the unexpected and unprecedented. The entire world is going through tough times, something which no one would have planned or accounted for. Sluggish economy, somber market sentiment and weak customer demand are every businessman’s worst nightmare.
But God forbid, what if there is another lockdown or a similar slowdown in the future? What should you do to survive (and even thrive) in such challenging and unprecedented times? Read ahead to prepare yourself.
A Business Continuity Plan (BCP) is a must for every smart and wise businessman. It is a proactive plan which lays down the ways to minimize or avoid risks arising from disruption of normal operations, steps to be taken during contingencies as well as a plan for disaster recovery. A BCP can help you stay financially viable for a reasonable time period.
Digital is the #NewNormal
Demonetization and Covid-19 induced lockdown are two major events that have taught us the importance of adopting a digital way of business. Effective digital presence and strategies can ensure business continuity even in tough times like a lockdown. According to a recent survey, Indian customers are significantly more active online and looking for new products and services. A brand or business that capitalizes on this opportunity will always be two steps ahead of its peers.
Also, prepare your team to adapt technology and effectively work from remote locations when needed. Leverage digital connect platforms to stay connected from anywhere in the world.
Innovative employee structures and benefits
Times like these makes you re-think your business models. Contractual work arrangements, remote-working or virtual teams help you lessen your fixed costs (salary, real estate, etc.) and can enable you to scale up or down as per business needs.
It is also important to secure your team’s well-being through good medical plans. In these days and age of skyrocketing healthcare bills, employee medical plans are a great way to keep your team engaged and motivated. Health is wealth after all!
Remember how our elders always insisted on saving for a rainy day? An emergency or contingency fund is crucial for every household and business, especially in such uncertain times. As a thumb rule, your emergency fund should be able to take care of your expenses for 3-6 months. So, start putting away some money in this fund on a regular basis. Earlier you start, better it is.
And do not forget, you should have a separate emergency fund for your personal and business purposes. Do not mix business with pleasure!
Cash is king
You might have crores of money stowed into real estate, fixed deposits or other such instruments. But when an emergency strikes, cash is king. It is important to maintain an adequate portion of your investment or savings portfolio in funds which are easily liquid.
Man proposes, God (or in today’s times a virus) disposes! But that does not mean that we do not plan for such difficult days. Timely and effective planning can help you sail through the worst of days with a smile on your face. As it is said, God helps those, who help themselves!
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.