We have learned a lot about consulting during the coronavirus.
The pandemic caught most of us by surprise. Additionally, most of us would have never expected the nationwide looting and protests that have occurred.
Here, we offer four tips for navigating the current environment so that you can thrive when the economy recovers:
- Manage your cash
- Model scenarios
- Monitor employees and supply chains
- Have a long term plan
Follow this advice to improve your cannabis business’s odds of success.
Tip 1: Manage your Cash
Companies should focus on preserving cash. Finance managers must switch to survival mode.
While consulting during the coronavirus, we noticed that it is now more evident than ever that “cash is king.’
To remain agile, companies must optimize cash. We recommend taking advantage of government support. Seek the options that the gov’t is offering for your type of operation.
Having solid and accessible sources of credit is paramount.
Tip 2: Model Scenarios
Given the uncertainty, companies should model various scenarios.
The old adage goes:
“Fortune Favors the Prepared Mind” – Louis Pasteur
Your company’s survival rests on its ability to respond to various outcomes. For this reason, create models unique to your business for various scenarios.
For instance, are you prepared if the lockdown continues into the third quarter? How about if it lasts until 2021?
Also, when do people think the economy will improve? By mapping out scenarios, you can make and test decisions now.
Make sure your team is able to manage a range of outcomes. Is your team familiar with regulatory compliance? Regulators may enact strict rules in response to the virus. Ensure your company is capable of satisfying regulators.
Consulting during the coronavirus has emphasized the importance of using models. Engage a cannabis consultant to assist with mapping outcomes.
Tip 3: Monitor your supply chain and employees
Upon reopening, the virus will return. You need to prepare now to ensure that your supply chain will remain intact.
Additionally, businesses should use a tracing system. Let’s say an employee gets the virus. How will you react?
Have policies for isolating infected workers and goods. Identify alternative suppliers in case one of your suppliers shuts down.
While consulting during the coronavirus, we noticed the importance of creating flexible solutions.
Tip 4: Have a long term plan
The world may feel like it’s falling apart. But leaders must have a strategy. Plan for the long term.
“This to shall pass”
The crisis is temporary. Can you picture your business in one year? Also, what can you do now to thrive later?
Consulting during the coronavirus | Prepare for the long term by:
- Building your cash.
- Arranging supply chains.
- Paying suppliers early.
- Contracting with small businesses.
Help your suppliers by paying them early while requesting a discount. By doing so, your suppliers can respond quickly to the rebound.
Contract with small businesses to ensure they survive these times.
Equally important, you must prepare for an uptick in demand. Do you have enough employees to handle the uptick? Do your customers know when you will reopen?
Prepare your customers and suppliers for the increase in demand. Make sure you have enough inventory to meet the demand.
You may have to update your operations now. Consider repositioning your brand. There will be a new normal, so evolve or perish.
Our team has continued with our consulting during the coronavirus. Contact us today to learn how we can help you.