2020...the Perfect Storm

The Perfect Storm.

Once again business owners/leaders find themselves in stormy waters with the wind blowing against them. The economic fallout from COVID-19 will be far-reaching. Some are even calling it the perfect storm.

Moody's has recently commented in a Webinar that, "COVID-19 has created a global economic tsunami... Travel, tourism, and international trade have been severely disrupted, and businesses across many industries are shutting down. Central banks are responding by slashing interest rates and providing liquidity to their financial systems, and governments are ramping up spending and cutting taxes. But it is too late, a global recession has begun."

According to a research note by Goldman Sachs, the global GDP could be the lowest in 30 years because of this. And Peter Attard Montalto, from Intellidex (the Capital Markets Research Firm), said the following on the COVID-19 crisis and its impact on SA's GDP, "We've now adjusted our expectations to minus two-point- three, that's even worse than 2009."

Circumventing the Storm

It seems like there is no end to the bad news. We find ourselves in very tumultuous times, or the perfect storm as some would call it. What can be done to circumvent this storm?

First of all, we must understand that we cannot avoid or outrun this storm. This is not what it means to circumvent something. In fact the definition of circumventing means to overcome (a problem or difficulty), typically in a clever and surreptitious way. In other words, we must find clever and innovative ways to overcome or weather this storm.

Because SA Inc was already in financial trouble before this storm hit us, we have not saved for a rainy day (in fiscal terms) as a country and we still have major structural weakness in the economy, we can expect to be hit really hard by this crisis. There are also thousands of businesses in SA that are on their last legs that will not survive this storm.

Resilient and Robust Vessel

Experienced sailors will tell you that only the most resilient and robust of shipping vessels are able to sail through the perfect storm.

For your business to weather this tempest and out-survive its competitors it will need to be both resilient and robust.

Resilience

In psychology, resilience is defined as an individual’s ability to adapt to life challenges, social disadvantages or highly adverse conditions. In ecosystems, resilience is defined by an ecosystem's ability to respond to disturbances by resisting damage and recover quickly.

For a business to be resilient it must have clarity of purpose, direction, and positioning.

1)   Clarity on Purpose

What is the core purpose of the business? What is its reason for being? Why did the founders start the business? If you can answer these questions succinctly in a very brief statement you have clarity on Purpose. You might even call this your purpose statement, or your Big Why (see Start with Why by Simon Sinek)

2)   Clarity on Vision

Where is the business heading? What do the shareholders want the business to look like and achieve over the next 3-to-5-to-10 years? Do shareholders agree upon the goals and destination of the business? If you can answer these questions succinctly in a very brief statement you have clarity on Vision.

3)   Clarity on Positioning

Who is your ideal client? Do you have an ideal client profile? Why do these clients buy from you and not your competitors? What problems are you solving for them? What makes you unique? If you can answer these questions succinctly in a very brief statement you have clarity on Positioning. You might even call this your UVP (Unique Value Proposition)

Robust

The definition of robustness according to the Oxford dictionary is 1) the quality or condition of being strong and in good condition. 2) the ability to withstand or overcome adverse conditions or rigorous testing.

For a business to be robust it needs well organized and reliable (systemized) operations and also lead generation and lead conversion systems.

A business that is robust meets the following criteria:

• It’s a business that is well organized with systematized operations, that delivers on clients expectations consistently
• It has systemized lead generation (marketing) and lead conversion (sales) engines, that delivers a constant flow of new business (and with that cashflow) into the business
• It’s a scalable business that grows without chaos
• It’s a business that buys the owner(s)/leader(s) time to focus on strategic things like next-level growth; since they are working ON and not IN the business
• It’s a business where the owner(s)/leader(s) has control over things like KPA’s, outcomes, goals, and the direction of the business
• Finally, it’s a business where the right people are doing the right thing at the right time

Back to Normal...the New Normal

It is not enough for your business to be resilient and robust to weather the storm, you'll also need momentum for growth.

Right now we might be sailing against the wind but when the wind changes direction and we return to business-as-usual, we'll need to have outlasted our competitors and be in the front of the pack to win the race and gain more market share.

Back in 2013/14, we worked with 24 Businesses that were located in the Rustenburg area. During the time the Platinum Mines suffered the longest strike (5 months in total). Our clients were all largely dependent on the mines for revenue. And everything came to a grinding halt for the entire economic region.

We had to work with these businesses to re-engineer their value propositions to the mines to ensure that they could survive the strike. 23 out of the 24 not only survived but they also posted record sales when the mines opened for business again.

Time to Think Outside the Box

The world is rapidly changing and the COVID-19 economic crisis has in fact accelerated change even more dramatically. This crisis also requires that we move and think outside the box and change our approach to business as usual. The rules of engagement have changed. We can no longer expect to do the same things and expect different results.

The greatest risk every business owner or leader has is that they are trapped in their own minds and the images of the past. You will need a fresh perspective and new insight to navigate your business through this storm. One thing is certain, your business will need to be resilient and robust to weather this storm and outlast its competitors so that when the wind changes direction you can be in front of the pack and quickly gain more market share.

We are able to support you and your business in this regard, just like we did for the 24 businesses that we worked with during the Platinum Mine Strike.

If you want a very brief, but direct, conversation about how you can take your business to the next level of growth and value through building it into an Asset of Value, call me 082 777 4966 or alternatively mail me [email protected]