While the full impact of the coronavirus on a personal and economic level remains to be seen, the influence on daily operations and company strategies is visible in most industries and teams, including in OpenOcean’s portfolio companies.
More than ever, your (software) solution needs to be a vital medicine, a key revenue-generating facilitator, or a cost-cutting enabler for your customers, who now focus mainly on staying in business.
In this series, we assume you have already taken necessary measures to make sure your teams stay healthy and can work productively in the new context. Many good articles on remote working best practices have also been shared lately. We want to focus on best practices from our portfolio companies and other software businesses, regarding — how to analyse the situation, the impact on your business, and how to respond to the challenges of an uncertain market.
In addition to our blog posts (below) we have organized a webinar around the best practices and invited Stephen Upstone, founder and CEO of LoopMe, to share his insights and view on what to focus right now. Both, Tom and Stephen, have faced downturns before and give a few examples on previous scenarios and their learnings from those.
Phase 1 — Accept the new reality and secure continued operations
Do assume also your business will be affected by the crisis. Learn from best practices at OpenOcean’s portfolio companies and other software businesses, which include:
🔵 Immediate cost-related actions to consider
🔵 Revenue planning and scenario analysis
🔵 Burn and cash runway management
🔵 Contingency planning
The main objective in Phase 1 is to ascertain that your business survives the downturn.
Read the full post on Medium 👉🏾 here
Phase 2 — Make the most of the opportunity
🔵 Step up your leadership.
🔵 Continue to improve your cash flow.
🔵 Tune or innovate your offering to serve your customers even better.
🔵 Enhance your interactions with both your sales teams and your customers.
Phase 2 is the time to improve your operations and solutions continuously. You need to extend the runway so that you come out stronger at the end. It is also a time to gather data points to help you analyse and forecast better, as you will need to update your scenarios if you want to weather the pandemic. There is a silver lining in all this for an early-stage company with a still modest revenue stream compared to industry giants. The hit to your business will hurt, but as long as you stay in business, your position in the market should strengthen and you will have a chance to make up for lost ground relatively rapidly when things improve.
Phase 3 — Get ready for post-COVID-19 and the new norm:
Your team, business model, and client base may have changed significantly.
When Phase 3 (post-COVID-19) begins, you will reap the rewards from having outlasted the crisis. When planning this far ahead, some topics to consider include:
🔵 You will have longer-lasting and deeper relationships with your customers.
🔵 Potential new customers will be more ready to consider and purchase through purely digital interactions.
🔵 Your sales channels and networks will need to be rebuilt.
🔵 Your operational model will be leaner than before.
🔵 Your team and culture will have evolved.
If you made the hard choices to ensure your business could ride out the storm & then you stepped up your leadership & improved your offering, post-crisis you should have a stronger market position, better business model, and a leaner operation and team. This is a great platform from which to start reinvesting and growing into a long-term winner! Full article on Medium 👉🏾here