Matthew Curtis
Re-starting, recovery and resilience, why the relaxing of restrictions means businesses should “Stay Alert”.
It’s late July, the UK is finally emerging from what might prove to be only the first period of lockdown needed to slow the spread and reduce the fatalities caused by Covid-19.
How has the lockdown experience been for you personally, your family, teams and for your business? There is every chance that your experience of lockdown will be different to the experience of colleagues and the same is true of businesses.
To say that we are all “in the same boat” isn’t true, in my opinion
… it’s more apt to say we are all caught in the same storm, in vessels of different shapes and sizes and of seaworthiness. It’s also true to say that each boat has on board a unique crew, made up of individuals with their own skills and experiences, strengths and weaknesses.
Relaxation of lockdown restrictions is undoubtedly welcome news for businesses that are able to re-emerge and begin trading again. To return to the stormy seas analogy, for many businesses’ lockdown coupled with an un-precedented package of government support represented a period of safe haven and shelter from the tumultuous seas.
As we entered lockdown decisions had to be taken due to the restrictions and circumstances forced upon us. Decisions had to be taken quickly and communicated at a pace that didn’t allow for inclusive debate or consensus building.
Re-opening, re-starting and building a forward looking and resilient business able to stand the test of time in an ever more complex, volatile and un-certain climate requires a much more inclusive style of leadership, where it is acceptable to show your team, your vulnerability, to be open with them that you do not have complete answers to all their questions and that you would like them to play a part in finding new solutions to the challenges that you are facing as a business. Make time to check in with your "crew" both collectively and 1:1.
Businesses need to use the diversity within their teams and think about how their business's unique combination of people, products & processes can be leveraged for resilience and competitive advantage.
Business leaders should be mindful that Business Continuity planning and Business Resilience planning are not the same. Continuity planning produces “planned” responses to foreseen occurrences i.e. in the event X happens procedure Y shall be adopted. Continuity planning does exactly what it says on the tin… allows a business to continue and to mitigate the damage an event has on the business – It seeks to stop the bad things that were predicted might happen from being catastrophic.
Business continuity thinking and stopping bad things happening is an important part of building a resilient business, but only a part. Resilient businesses also build the environment, culture and teams that are more able to make good things happen than their less resilient competitors.
They do not focus only on continual improvement and stability, they spend time and energy on innovation and flexibility.
Being able to be consistent and prudent to mitigate risk whilst at the same time being flexible innovative and open to trying new things, inevitably will bring about challenging conversations within leadership teams… and it is for this reason building a safe environment and culture for challenge to take place is so important to building business resilience and high performing teams that are truly committed and prepared to be accountable for delivering results.
At a time when we are asked to wear a mask to reduce the spread of Coronavirus, it’s critical that we do not allow our professional masks to be a barrier to open and transparent communications with our teams and other stakeholders in our businesses. It may not be possible yet to lay out a detailed roadmap of the next 12 months for your organisation, but you can your shorten time horizons and come together around short term goals, give people a shared sense of purpose, add pace and momentum to your recovery.
Communicate frequently, be ambitious, be specific and be transparent.
The Case For Bootstrapping Your Business: The Path to Profitability and Independence In the vibrant, ever-evolving world of startups, the decision to bootstrap or seek early-stage investment can significantly shape the trajectory of your business. Bootstrapping, the art of building a company from the ground up using personal savings and revenues, often gets overshadowed by the allure of venture capital. However, the benefits of this self-reliant approach are profound and, in many cases, essential for long-term success and sustainability. 1. Complete Control and Ownership One of the most compelling advantages of bootstrapping is the retention of complete control and ownership. When you rely on your own resources, you’re not beholden to investors who may have their own vision or agenda. This autonomy allows you to make decisions that align with your mission and values, fostering a culture that reflects your authentic vision. It’s your business, and you call the shots—an empowering position that can lead to innovative and unorthodox solutions that set you apart from the competition. 2. Financial Discipline and Efficiency Bootstrapping necessitates a stringent level of financial discipline. Every dollar counts, and this constraint drives entrepreneurs to optimize every aspect of their operations. This frugality often leads to more efficient business practices, ensuring that resources are allocated to initiatives that directly contribute to growth and profitability. By focusing on generating revenue early and efficiently, bootstrapped businesses build a solid foundation that can withstand market fluctuations and economic downturns. 3. Strong Customer Focus Without the cushion of investor money, bootstrapped companies must prioritize their customers to generate revenue. This customer-centric approach often results in better products and services, as feedback is directly tied to the company's survival and success. Building a loyal customer base not only drives profitability but also creates a community of advocates who can help propel the business forward through word-of-mouth and organic growth. 4. Sustainable Growth Bootstrapping encourages sustainable, organic growth. Unlike venture-backed startups that may experience rapid, unsustainable growth driven by the need to satisfy investors, bootstrapped companies grow at a pace dictated by their actual performance and market demand. This steady, measured growth often leads to more stable and resilient businesses, capable of weathering industry shifts and economic challenges. 5. Creativity and Innovation Constraints breed creativity. When resources are limited, entrepreneurs are often forced to think outside the box to solve problems and achieve goals. This inventive mindset can lead to groundbreaking solutions and unique market positioning. Bootstrapped companies frequently develop innovative business models and creative marketing strategies that give them a competitive edge. 6. Higher Valuation When a bootstrapped business reaches the point where it’s ready to seek external investment, it often commands a higher valuation. Investors recognize the value in a company that has demonstrated profitability and a viable business model without external funding. This higher valuation means less equity dilution for the founders and a stronger negotiating position. 7. Personal Satisfaction and Confidence Finally, the journey of bootstrapping a business instills a deep sense of personal satisfaction and confidence. The knowledge that you’ve built something from scratch, relying on your own ingenuity and perseverance, is incredibly rewarding. This self-confidence can be a powerful driver for future endeavors and challenges, fostering a resilient entrepreneurial spirit. In conclusion, while seeking early-stage investment can provide a significant cash infusion and resources, bootstrapping offers a unique set of advantages that can lead to a more robust, customer-focused, and innovative business. By embracing the challenges and rewards of bootstrapping, entrepreneurs can build companies that are not only profitable but also aligned with their core values and vision. The path of bootstrapping is not easy, but for those who choose it, the rewards can be immense and deeply fulfilling.
Crafting a Winning Pricing Strategy: Balancing Cost-Up Pricing, Market Pricing, and Value Perception to Align with Customer Experience
Book your road-trip to success - via Take-off@m4cltd.com