Survive to thrive

Survive To Thrive: Phase I Survive

A 3-Part Playbook to

Sustainability in Times of Uncertainty

 

In times of uncertainty, fear, despair and anxiousness are typical ‘go to’ states of being. And while it is important to acknowledge these feelings, what is more important, and what will determine your next level and speed of recovery, is what you do next. This is the meaning of ‘resilience.’

Resilience is about survival. Sustainability will be your ability to position your business to Thrive long term.

Assay’s mission is to empower business owners to achieve their destiny. During this global crisis we are providing tools to help businesses to SURVIVE these unprecedented times while also preparing to THRIVE once the crisis begins to recede.

We are making available a 3-Phase ‘Survive to Thrive’ playbook to help you prepare, execute, and re-position your company to take advantage of emerging opportunities. Now is the time to focus your leadership team on building a healthy and sustainable company, upskill your staff, bolster operations and further develop strategic assets, which in turn increases your business value.

Here is a preview of our program:

 

3-Phase Survive-to-Thrive Playbook

Phase 1  Survive – Assess your business through a new lens to: identify risks and opportunities; garner additional financial resources; and communicate your course of action.

Phase 2:   Revise – Plan for the future. Create your roadmap for the future; recalibrate your business to align with your new path; develop new sources of revenue; enhance your staff capabilities and look to expand to new markets or sell through new channels.

Phase 3:   Thrive – Go beyond the rising tide and implement your new roadmap to achieve the next level of success for your business.

PHASE ONE: SURVIVE to THRIVE

“When things get tough, the tough get going”, so said Joseph Kennedy, father of JFK. In these difficult times business owners need to dig in and do whatever is necessary to first Survive in order to Thrive later.

The Assay team has developed a three-phase plan to help our clients through the current upheaval. First, we will take you through the 7-Steps to Survive. Subsequent postings will articulate the steps to Prepare to move forward again and culminating with our Thrive playbook.

If you have questions or would like to work through this in more detail contact us at your convenience to set a time for a confidential conversation.

 

STEP ONE: Crisis Communication

  • Create A Crisis Communication Task Force & Plan:
    • WHO: A Crisis Communications Task Force with “one voice” for consistent messaging

 

For INTERNAL organizational communications the task force should determine:

    • WHAT: Information to communicate (i.e. work from home procedures, health guidelines, operational updates, inspirational quotes, etc.)
    • WHERE: Will information be communicated (i.e. video, e-mail, website)
    • WHEN: Will communication be sent (i.e. every Monday – consistency is key)
    • WHY: Clear and consistent communication will improve employee well-being, minimize confusion, and maintain confidence in the organization

 

For EXTERNAL communications the Task Force should determine:

    • WHAT: Information to communicate (i.e. business as usual, modified operations, business closure, etc.)
    • WHERE: Will information be communicated (i.e. video, e-mail, website)
    • WHEN: Will communications be sent
    • WHY: Clear and consistent communication will improve vendor and client relationships, minimize confusion, and maintain confidence in the organization.

 

STEP TWO: HEALTH Regulations Assessment

  • Understand the WORKFORCE impact of current HEALTH orders:
    • WHO: Both hourly and salaried employees
    • WHAT: Needs to be changed to adhere to the regulations
    • WHERE: Will employees need to work to be compliant
    • WHEN: Will any workforce changes go into effect
    • WHY: All efforts are made to keep employees and the community safe
    • HOW: Will the employees be set up for success if asked to Work from Home

 

  • Understand the FINANCIAL impact of HEALTH orders:
    • WHO: The Leadership Team
    • WHAT: The COVID-19 government health orders and CDC recommendations
    • WHERE: Do they apply and how does that impact your specific jurisdiction
    • WHEN: Understand the timing of the current health orders
    • WHY: Adjust financial plans to project the impact of the current orders

 

STEP THREE: LEGAL Regulations Assessment

  • Assess the impact of FAMILIES FIRST CORONAVIRUS RESPONSE ACT:
    • WHO: Qualifies as an “eligible employee”
    • WHAT: Are the paid leave entitlements and qualifying rules
    • WHERE: Can employees find this information
    • WHEN: Provisions will apply April 1st through December 31st
    • WHY: Employee awareness of their rights and organizational Compliance

 

  • Assess the impact of the CORONAVIRUS AIDE, RELIEF, and ECONOMIC SECURITY ACT:
    • WHO: Businesses <500 employees
    • WHAT: Are the Aide and Relief options available: Paycheck Protection SBA Loans, Emergency EIDL Grants, Subsidies for Existing SBA Loans, and Employee Retention Payroll Tax Credits
    • WHERE: Can Aide or Relief applications be obtained (See our other article: Working Together)
    • WHEN: Dependent on the type of Aide or Relief that is requested
    • WHY: Aide or relief will directly impact cost mitigation efforts

 

STEP FOUR: Revenue Forecast

  • Assess the scenarios and forecasts of the first 90 days, the next 180 days and longer:
    • WHO: CEO/CFO/COO/Director of Finance
    • WHAT: Create three 2020 REVENUE RISK scenarios:
      • low (30%), medium (55%), and high (80%)
      • customize percentages based on your business and industry
    • WHERE: Discuss revenue results and forecast updates weekly
    • WHEN: Financial forecasts are updated weekly and compared to the Revenue Risk scenarios to see which is materializing and what decisions need to be made
    • WHY: Creating revenue models and proactively developing cost mitigation strategies for each will allow teams to be strategic instead of reactionary

 

STEP FIVE: Cost Mitigation

  • Assess the scenarios and forecasts of the first 90 days, the next 180 days and longer:
    • WHO: Leadership Team
    • WHAT: For each Revenue Risk scenario determine the following:
      • how much cost will need to be cut in each of the scenarios
      • the specific triggers for each phase of cost cuts
      • the specific action steps and the associated cost savings for each:
        • staffing strategy: pay reductions, furloughs, lay-offs
        • department specific strategies
    • WHERE: Discuss weekly results and updates with your leadership team
    • WHEN: As financial forecast are updated weekly, consider how the changes will impact the cost mitigation strategy for each scenario and update as needed
    • WHY: Outlining the specific cost mitigation strategy for each scenario will provide clarity and calm so the team can align around what must be done

 

STEP SIX: Cash Management

  • Assess the scenarios and forecasts of the first 90 days, the next 180 days and longer:
    • WHO: CEO/CFO & Accounting
    • WHAT: Build a cash management plan that roles to a daily, weekly and monthly cash position. Also, review covenants to see if adjustments can be requested.
    • WHERE: Visit the IRS and Treasury websites to determine which Federal loan or tax relief program will best maintain or provide liquidity through year end
    • WHEN: Discuss AP/AR weekly with the goal of retaining as much cash as possible
    • WHY: Daily consideration of cash will be critical in maintaining liquidity

 

STEP SEVEN: Revenue Generation

  • Assess the ability to quickly get revenue moving again for the next 90 days as you look to the Revise Phase:
    • WHO:  Client/Account Managers
    • WHAT: The packaging, pricing, and marketing of products and services must be updated to reflect the current market
    • WHERE: This updated messaging should be clear in all customer communications
    • WHEN: Determine which messaging needs to change immediately and evolve the product/service, pricing and marketing strategies as the market dictates
    • WHY: Businesses must adapt in order to drive revenue in a changed market

What’s next?

The Assay team are leaning in with their clients to help them through this Survive phase, being true to their purpose of helping business owners achieve their destination and realize their life’s work. Look for the next two phases of Survive to Thrive: Phase II (Revise) & Phase III (Thrive) coming soon.

 

Adrian Bray