There’s no doubt about it – things are tough. Several weeks of lockdown have done nothing to ease the mounting pressures on businesses and we can all see the business blues are creeping in.
We know the hard hit sectors are hard hit once again and as much as possible is being done to help them through this current hiatus. Those sectors that have not been hard hit to date are also feeling the pinch as the problems that have been building over the last twelve months have compounded to create an operating environment that serves up one set of instabilities after another.
Supply chain interruptions have reached crisis point for many and with Auckland in extended lockdown even local supply chains have stalled.
Working capital is under pressure with businesses having to order stock far in advance – six months in advance is not uncommon – and, as well as ordering far ahead, owners are having to order more and carry more stock, clogging up cash flow, not least thanks to slower payments out of Auckland.
All things considered it is a much tougher environment and although many business eased into lockdown which, despite its sudden arrival was not a new experience for us, many appear to have hit a slump. Emails and phones are going unanswered and in some parts of the country it feels like some operations have ground to a halt as they wait for someone to press the restart button.
How then do we cope with all this? As business owners, how do we tackle the operational issues, the nationwide slow-down and, perhaps the biggest issue of all – our own motivation?
My first suggestion would be start with scenario planning. Forget about ‘best case’ scenario completely and work instead on ‘most likely’ and ‘worst case’. Those who are faring best at the moment took time out months ago to think ahead. They looked at the ‘most likely’ scenarios and realised that lockdowns and COVID problems would be with us for some time, so they adapted their business models and operations to allow for alert level disruptions. Interestingly, worst case for many isn’t an alert level change. It is bound up with the supply issues or working capital and that is certainly something that can be addressed through good scenario planning.
If you have slowed down, stop and restart. Take some time to look at where you are, how much you’ve achieved in the last 18 months simply by staying in business and then look forward. You will be staring uncertainty squarely in the eye and pushing on with ‘more of the same’ may seem daunting, sapping your motivation even further. And this is where my second suggestion comes in – focus on your good leadership habits and get some support. Don’t try to go it alone. Our peer boards have been invaluable for members throughout the pandemic as it brings business owners together to tackle the issues we are all facing right now. When you are the one everyone is relying on to get the business through, find the back-up you need – don’t struggle on trying to cope alone.
Beating the lockdown business blues isn’t easy – but talking with your business buddies on a peer board can certainly lighten the load.