As we pass the anniversary of the current pandemic’s onset, improvements and positive signs are more frequent. Businesses are returning to normal operating levels of revenue and volume after receiving much-needed, direct funding from recently passed legislation, including many in hard-hit industries like hospitality. Plus, as snowflakes fade and flowers bloom, we feel that there are many reasons to focus on the abundance of blessings around us.
As we work with our clients to determine next steps on their path to success, our team is focusing less on change and more on transformation.
Here are some common, and important, discussion points and questions to consider as we enter the 2nd quarter of 2021:
Remote workplace: The remote workplace is truly part of our vernacular now. Some questions to ponder are:
Does it afford a better work/life balance for employees?
Does this become a permanent option for employees?
Do employees seek out a co-work environment closer to home?
Exit Strategy: It’s quite possible that during the last year some business owners have realized that the business will require a different type of leader or mindset. Some questions are:
What does the economy dictate is the right thing to do?
Is it time to increase size by selling to a competitor?
Is a change in model, e.g. taking on a partner, appropriate at this time?
Capital Structure: Companies were able to take advantage of necessary cash through attractive loans like the PPP, Idea Loans, etc. There will be a day, however, when these options no longer exist — and cashflow will depend on a company’s operating activities.
Are there signs of improving operations at this point in time?
Are there are constraints that need to be addressed through a debt/equity raise, change in business fundamentals, or product offerings?
There’s an old saying: the only constant thing in life is change. Any successful entrepreneur or business owner knows that there is no third direction. You’re either growing — or dying. Now is the time to think strategically and ensure that the lessons learned over the past year will make us stronger as individuals and as companies.
Take-away: If you’re a business owner who is uncertain of your company’s next steps, now is the right time to hire a fractional CFO to help determine how to maximize your company’s profitability. For a free diagnostic, please contact us at firstname.lastname@example.org.
Co-founders & Managing Partners