So Far So Good

2020 will forever be remembered as the year of incredible upheaval for small and medium sized businesses. Owners have been forced to adapt to new realities by adjusting their thinking and in cases, pivoting their operations – literally overnight. As a business owner you have likely cut back expenses as much as possible. You have accommodated your employees’ needs for safety by having them work from home. You may also have taken full advantage of the government assistance that has been made available to you.

You have most likely lived in survival mode for the better part of six months.

But what is the next step in this strange new normal? How do you continue to not only survive, but to build value in your business – even now as we are in the second wave of this pandemic?

Is That All There Is?

To merely survive is not why you built this business. What about your idea to either grow, exit or step back and enjoy some of the fruits of your labour? Does this second wave mean you need to give up on your transition plans?

In our previous blog post, we talked about how to put strategic planning into action and how important this is for any business owner. In this second wave it will be crucial that business leaders take the lessons that the first six months taught them and apply them to their strategic planning. However, in addition you also need to consider something even more important: how can you successfully withstand the second wave of COVID-19 and build the value of your business so that you can undertake a transition out of your business – whatever your transition plan may be?

Run Your Business Like Its Always For Sale

In tough times it is even more important to look at your business from the perspective of a potential buyer. Here are three things you should be doing to build value as we move through the second wave of this pandemic.

1. Understand a buyer’s interests

Potential buyers and investors look very closely at how a business performs in a downturn. Specifically, they consider leadership traits, such as self-sacrifice and transparency. They look at cultural strength – things like resilience and innovation. They are interested in how companies are responding to COVID-19 – in their ability to pivot a negative situation into a positive one, and ultimately how they plan to build a credible story for the future.

2. Focus on building up management strength

This is the time to ensure that your management team is stronger than ever. Although sound financials are a critical element of business value, your business will not be measured on the financials alone. In challenging times a potential buyer or investor will want to understand the role your management team played in helping the company through this downturn. They will want to know that there is a strong foundation for your business, beside yourself, on which the company can grow and develop. That foundation is in the strength of your management team.

3. Plan for an uncertain future

Businesses will become great companies based on what they do today. Think about the future goals you have in place for your business and how COVID-19 may have impacted those plans. As business owners, we need to constantly reassess our strategic plan to accommodate the changing world around us. Involve your management team in this evolving planning process to keep them focused, forward-looking and motivated to carry on into an uncertain future.