For more than 100 days Sydney has been in lockdown. Many businesses have stayed alive through Government stimulus or pivoted to keep their doors open and staff employed. On October 11th, these businesses can finally reopen and hit restart. The next 100 days will define many businesses. Will Sydney family businesses get it right?
The US saw their retail sales grow by 15.8% when they came out of lockdown. As vaccination numbers grew, their consumer concerns diminished and sales rose. Sydney will come out of lockdown and head into Black Friday sales, Cyber Monday, followed by Christmas trading and Boxing Day sales. Are businesses ready for what lies ahead?
The journey out of lockdown is more important than ever. Here’s my 8 tips for family businesses to journey out of lockdown successfully:
- Have a break and catch your breath
Whether it’s just a quiet cup of tea or a couple of days with all technology switched off, it’s time to recharge your batteries, as you’ll need all the energy possible.
2. Family Governance
The strength of family business during lockdown is how the family have come together. This means continuing to support one another and collectively agree on the best way forward.
3. Legal Policy
The COVID rules and restrictions are complex and the NSW Government have not provided clear, simplistic rules. Ensure you consult a solicitor. A solicitor can assist you in creating a policy for your business and address frequently asked questions, including providing a duty of care to your team and awareness of your obligations going forward.
4. Cash flow modelling
The complexity in accounting preparation for the next 100 days will be heightened. You need to forecast the different scenarios of what your sales could look like, the stock required, and the staff needed. You also need to consider the vaccination status of your staff, and should COVID compromise your business premises or staff, how will you continue?
Predicting what level of stock you’ll need and managing the supply chain may also prove challenging. How long will it take for stock to arrive? Will you have sufficient stock for the future sales? This is where financial forecasting comes in.
5. Have you placed your initial stock orders?
The supply chain is currently delayed and unpredictable. Don’t delay ordering stock. Ensure you put your orders in as early as reasonably possible.
6. Maintaining your family values especially in busy times
Family businesses that made decisions with their family values front and centre have weathered the storm of lockdown, some have even thrived. It’s a good time to reflect on your values and ensure you stay true to them during the next 100 days. For example, if quality is what you stand for, don’t compromise that for a quick sale.
7. Communicate. Communicate. Communicate.
Communicate regularly with your team, suppliers, customers and family. Keep everyone in the loop as you head out of lockdown. Frequent communication will enable you to troubleshoot issues quickly and pivot when things don’t go to plan.
8. Prepare now!
Now is your last chance to prepare. Does the shop or office need a fresh deep clean? Does a sign need replacing? Does the storeroom need to be tidied? Is your price list/menu of to date? Have you tested your POS machine still works? Make the most of this time before you open your doors.
If you feel overwhelmed, unsure or need a sounding board for ideas, we’re here to help. I hope the next 100 days make up for the last 100 days in lockdown!.