The past three months have been unprecedented with the entire world staying home, tough times for #business & employment, and changing business models. However, the silver lining is that ‘tougher the time, better are the learnings for a lifetime’. So what did this pandemic teach us and how do we implement these learnings? For me, the 5 most important learnings of the last 3 months have been:
- Importance of Cash flow (‘Cash is the king’): For many businesses, however large they are, it is becoming difficult to sustain 3-6 months of salaries resulting in mass retrenchments and salary cuts. For a going concern, firing and re-hiring itself is a costly proposition not only in terms of recruitment and other hiring costs but also the time and money spent in training of new hires. This situation largely arises out of poor cash flow management. An organization having good sales & profit can also fail for the reason of poor cash #management. So a simple question to you is:
‘If you are the CEO of a start-up company and were to choose from two options (other factors not impacting), would you rather choose?
- A sale of 40% margin but a credit period of 150-180 days or
- A sale with a 10% discount for advance/early payment.
The option you choose can make or break the organization in the long run so choose wisely.
- Power of Compounding: The virus has taught us the power of compounding unlike anything else. If other factors were to remain the same (i.e. no lockdowns, no quarantine, no travel bans, etc.) what do you think would have been the number of impacted people by now or ‘rate of doubling’? There are many real-life ‘nonpandemic’ use cases for this. If pandemic can spread like this why can’t the same principle be used to spread other positive things like ‘#happiness’, ‘#culture’, #positivity, or brand message for that matter(something to ponder about)? MLM uses this very effectively however it can be used for other softer but important aspects as stated above.
- Flexible #business models: Many businesses also faced problems because of the rigid systems they had built over the years. For example, I know a few businesses despite growing at a good pace did not invest in technology and platform which could have helped them a lot in these times. So flexibility to whatever extent possible should be brought in. This requires a change in mindset and a catalyst to make that change possible.
- Need for alternate income: Sadly this pandemic has resulted in the loss of job for many. For some, it is a matter of anxiety while for others the very livelihood. I personally know many (including myself) who have been in a job for many years without having a second option of income. It is at these moments we feel the importance of investing some amount of time every week towards this cause. However small the amount may be initially but keep at it and you will succeed in making it sizeable. What to do and how to choose is a matter of research maybe this article can help. http://bitly.ws/8KEc
- Improve your #network: If you have lost the job, the one thing that can help is certainly your network. By network I mean good quality network both online (#LinkedIn etc.) and offline (personal connections). It’s a continuous and conscious process however certainly yields result in the longer run.
These learning I believe not only are relevant for business and job but also for our personal lives. So how can we implement them is a matter of further deliberation and discussion.
#motivation #leadership #sustainability
May humanity be victorious
God be with us.