2020 brought very different memories and responses to just about everyone and for a variety of reasons. Families were built while others were broken, businesses thrived while others closed and babies came into the world while other soles departed.
What one takes away from a good or bad experience in 2020, doesn’t necessarily suggest it has to carry into 2021.
A saddened loss of someone special can become a pleasant remembrance, a tragic business loss can become a lesson in what to change and isolation can prove the benefits to reach out to others, known or unknown.
Depending on the industry, some owners claimed “best year ever”, while others announce they were forced to close after years of building. Each can be an opportunity to see as a lesson in what worked and what did not.
Silver lining during a challenging period.
Let’s look closer at the possibilities of a business’s windfall and the challenge to keep up, while others barely broke even or made the tough decision to close.
It can be said the common denominator, in either case, is the emotional toll 2020 has taken in everyone in the form of anxiety, level of stress, patience, and mental exhaustion. The energy spent which was minor for some while significant for others can be considered a critical factor in how to mentally survive in 2021.
For banner year businesses, what can be looked at to continue a similar path in 2021?
- Focus on the segments of the business that seamlessly worked.
Look closer at the business segments that suddenly, no longer worked and if the segment needs to be modified, replaced, or eliminated.
Example: Foodservice operations such as Dunkin Doughnuts and Chick Fil A already had a model where a large percentage of sales were contributed to the drive-through window. What was initially designed for “fast & convenient” quickly turned to be “effective & safe” per CDC guidelines. The drive-through model allowed similar companies to continue without effort while resulting in a leaner operation reflecting reduced overhead cost and overall reduced operational footprint. The model proved sustainable so the public will probably start to see less dine-in and more drive-thru.
- Review past growth strategies to see if they still align and on target for the next few years.
Especially hit hard was entertainment, so for movie theater chains like AMC, building more indoor theaters many not prove favorable, so investing in more outdoors with large HD screens may be just the ticket for sustainable profitability, so don’t be surprised to see more drive-in theaters or more online interactive experiences.
- If COVID-19 forced more work-from-home that ended up to be more profitable through productive and cost effective, then don’t be surprised to see the at-home model expand for years to come.
Not that long ago in January of 2020, if an employee was told to work from home, it was mostly looked at as negative and not considered a benefit. Today, work from home is commonly termed “working remotely” and for both employee and business, a much more desirable arrangement.
For the employee it’s a money saver from fuel expense, tolls, commute time, clothing and for businesses, a windfall of savings in less down time, reduction or elimination of office space, monthly overhead, office management and reduced sick time.
A few individuals I know now working from their home report receiving a year-end bonus for the first time, because the company had an increase in profitability through efficiency. The office parties may be a thing of the past, but am sure employees will be happy to trade for more earning potential and convenience.
For businesses that suffered, what can be changed to avoid a similar path in 2021 and forward?
- Look closer at similar businesses that had higher daily sales by simply by effectively serving more customers.
If your business model was designed to encourage customers to come inside and look over a large menu, then it is likely necessary to look at re-structuring serving the customer more effectively and rotating menu options.
By March 2020 for the business paying close attention to what was transpiring in Europe and Asia, quickly made adjustments and implemented new standards that resulted in being ahead of the competition.
New ways to place an order, with a reduced menu, offering family pack deals with several delivery options and cost incentive to pick-up, became the new entrepreneur.
In 2020 I would rather own a Ziggi’s drive-thru coffee hut over a Starbucks, whose model mainly encouraged inside service and who now reports having to close hundreds of stores.
- Face to face presentations and business lunches were once a popular feature, now it’s more product availability, service and cost.
Shaking hands to greet or complete a sale was an important part of some transactions, in 2020 it turned to, reliable and available products, purchasing convenience and reasonable cost.
Powerpoint presentations over Zoom are effectively conducted remotely and fine dine table-side service is converted to ready prepared gourmet meals. Valet parking was replaced with a five-star delivery service and shopping for a vehicle at a dealership is more conveniently done online and best of all, no-haggling to achieve a lower cost.
The new personal presentation for many industries such as medical is now safer and as effective by online chat. Basic assessments can be discussed face to face with many free online services available.
- Just because a business has been offering the same service and product for years, doesn’t suggest it is sustainable.
For distilleries across the county looking to keep products flowing and staff employed, they switched to making hand sanitizer even though they’ve never made it before. Hanes, a well-known brand and maker of quality underwear and stockings, quickly shifted to making face masks at a reasonable price, even though it was not in future plans.
The ability for any size business to respond effectively to make change no matter for trend or disaster, will be paramount for profitability and survival.
Welcome to change 2021.
If anything can be considered a positive from COVID-19 is, people were faced to recognize that “change” by force or will, can eventually turn out to be a better way to work, live or appreciate things. The virus dramatically affected families, businesses, individuals, countries, and the planet, creating a unique and rare period for a clean slate.
Decisions made, opportunities created and next steps planned for business sustainability, can prove to be beneficial for everyone in the long run. Simply looking at plans for what’s best for one, has the ability to fail quickly.
Don’t be anxious to have the way of life go back to what was, because the fact in the matter, for good and bad, it’s the reason we’ve found ourselves in this unique situation in the first place.
Schedule time with Darryl, to look closer at your past, current, or future business model. He can help you build a sustainable model and teach you how to be agile in order to survive.
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