2021 will be the second year in which COVID-19 plays too big a role in all of our lives and the life of your business. As a business owner you will have to continuously assess and respond as the pandemic impacts your staff and your customers. Staying informed and nimble is key.
We have devised two ways to use the 2021 COVID-19 Roadmap.
- Use the Master Flow Chart as the navigational guide for your business throughout 2021.
- Use the Crucial Change Flow Chart if there is an IMMEDIATE CHANGE in the OPERATION of YOUR BUSINESS dictated by the government or a COVID-19 incident. ⚠️
We have created the Roadmap to be self-directed but we are also available to advise and provide guidance. VtSBDC was here with you before, we are here now and we will be here with you into the future.
Here is a quick look at the steps of the MASTER FLOW CHART in order:
Step 1: Assess the Current State of Your Business because before you make any major business decisions you need to know exactly how you are entering 2021. First you need to know your numbers: how is the financial health of the business currently? Second, your market: how are your customers behaving and what do they need? Third, what has been working and what hasn’t: what did you learn from 2020?
Step 2: Create your Assumptions to Build Your 12-month Projections by diving deeper into the main areas of debt assessment, potential new pivots for 2021 and the costs and implications of the continuous review and updating of your safety protocols and messaging. You will need to:
- Update your debt obligations using the Debt Assessment (Self-guided debt calculator) and capture any debt obligations from 2020 (both from the CARES ACT and other sources that were deferred until sometime in 2021). Plus do an on-going review of any new programs that may be launched in 2021 and add new debt as necessary only after re-doing the debt assessment.
- Add revenues and expenses from any new 2021 pivot opportunities as you implement.
- Consistently review COVID-19 safety and messaging expenses (outlined in Assumptions and in the Safety and Messaging Flow Chart) such as additional cleaning time and supplies, physical space changes, cost of new marketing efforts, safety equipment and training, etc.
The final step is to ask yourself the very tough question: Can my business survive and ultimately thrive in the “new normal”?
- If you plan to operate your business in 2021:
- If you do not plan to operate your business:
- Create an Exit Strategy using the Closing Checklist.
Create a Transition Plan using the Succession Planning Checklist.