Business Risk Action Plan

Times are still challenging for many people in business.  With circumstances changing, combined with a number of factors outside of personal control, business plans are a movable feast.

We have put together a business risk action plan featuring 15 things you can do right now to protect you and your staff in the coming months.

Protect yourself

In any way you can.  But just in case, create digital manuals that your staff can follow “step-by-step” should they need to cover a task that you usually do.

Protect your team

If you and your team have been working remotely, is it time to revisit it?  Ensure regular breaks are being taken and they’re keeping energised.

Protection for your customers

If you’re open to customers, regularly check the Government guidelines to ensure everyone stays protected.

COVID-19 Board/Response team

Regularly meet with the above – does everyone understand their role?  Appoint, delegate and make them accountable.

Model your Cashflow (Part 1) 3-6 months:

Look at variations of cash-flow forecasts and how it could be affected between the next 3 to 6 months based on the below.  Then create plans to ensure your business can still survive should the worst happen.

– Bad
– Worse
– Extreme
Variables: Activity, Receipts, Length of Time

Defend Against Revenue Declines

Take a look at all of your customers and put them into categories based on the below.  This is your COVID Customer Classification for customers that will:

  • Thrive during the period (A)
  • Thrive after the period (A)
  • Always survive (B)
  • Survive and struggle after the period (C)
  • Survive and fail after (C)
  • Will fail or close (D)
  • Can & will pay (A)

Targeted Prioritised Communication Plan:  Make a plan to determine how you will respond to what classification your customers fall into, then create a plan as to how your marketing communicates with them.

Re-Classify Services Levels & Portfolio Manager

  • Partner Access
  • Manager Access
  • Team Access
  • Leveraged Access

Create Organisation Structure:

Based on the current climate/economy what will your business look like:

  • 3 Months from Now
  • 1/5 Years from Now

Model Cashflows (Part 2- know what your finances will look like)

  • 3 Year Cashflow forecast & projections

Plan the who’s: Who needs to do what and when? Make people accountable:

  • Short Term
  • Long Term
  • Team & Resource Actions

Cut Costs & Conserve Cash

  • Critical & highly valuable: What costs do you need to keep spending? Do you need to make members of staff redundant and outsource areas of your business for a cheaper price than keeping a full-time member of staff?
  • Highly valued but not mission critical: What services or supplies do you want to keep but that are not critical to your business mission and targets? Again, is there anything you can out-source instead?
  • Non mission critical & low value: What will not help you right now?

Direct outreach to key suppliers to discuss deferring payments, or removing services.

Remodel Business Services:

  • Now – what do people want during a crisis?
  • Future – what will they need after this crisis?
  • What can you provide to customers that will help now and in the future?
  • Make your business what people really want!

Implement Systems & Procedures

  • Leverage IT Automation
  • Document Operating Systems & Procedures

Identify Future Target Markets

  • How are you going to grow your customers?
  • Adjust your communications (see 6) to suit.

Identify & Start Building to Avoid The Next Crash

C Cash Buffer

Reduce Costs – Technology, Automation, Offshoring, Flexible Working

Assets Build Them, Team, Process & Procedures, Intellectual property

Stand Out, Ideal Customers, Pick A Niche, Referrals, Marketing & Sales

Help Yourself & Others, who are the who’s and who are you a who to?

Need help or advice on how to maintain a regular cash-flow? Call us on 01494 422742 or contact us here.