Reassessing your business model to continue providing for your family
By Ilke Platt
MANY post Covid-19 chats have been facilitated via social media platforms from entrepreneurs. Indeed, the impact has been felt but how have business owners been able to reassess their business models after this drastic halt in operations? Felix Arndt agrees that business has changed and will continue to change from what we knew. He alludes to new technologies, digitalisation, demographic changes, and artificial intelligence stepping up to a new level amidst this new climate change. Through the observation of retrenchments that have taken place, as a business owner much pressure is felt more than ever, to maintain households.
At Poiyah Media, with a business model shaped around small medium enterprises (SMEs), it was inevitable for us to reassess our day-to-day operations. Over half of our SMEs are no longer in a financial position to make use of our services due to the impact they have felt. This rippling effect has pushed us in a direction towards reassessing our business model. This includes the factors below:
Be realistic. If the whole model is based on a target market that can no longer afford your service, amend the ratio of clients that you take on of that calibre. For example, start to blend your SMEs with corporate clients to maintain your financial needs while still differentiating your company from the rest.
Is your business really digitally prepared? For businesses that thrive on events and attracting large crowds, this is now the time to relook at how you host events; the size versus the amount you charge to break even and make a profit. The positive effect of Covid-19 is that it has literally forced us to become creative. Use free platforms such as social media and become smarter as in how to charge for a reach.
Have alternative channels on standby. No business owner wants to hear or admit to getting an extra income or going back to corporate, even if that means getting a part-time job from a larger organisation that is able to afford you. Business owners should set aside their pride in birthing an organisation and admit to getting support when various factors play a role in jeopardising the growth and ability to kick off (if your company is still in its infancy phase).
Embrace the new normal. Waiting for business to go back to normal may result in financial distress. This is where adaptability is critical to survive. Real business owners already know how to make alternative plans when one project does not pick up. This should be the same mentality used to accept some business modalities that are hard to go back to normal.
In conclusion, business owners should realise that this exercise is not only applicable to them but also to larger organisations. Kristin Rivera and David Stain back confirmed that a PWC survey for CFOs conducted in March, showed that 48 percent respondents said that they are planning changes in their financial forecasting, modelling and communications. Allow this wave to be a positive impact to better prepare for future events.
Ilke Platt is the founder of Poiyah Media