• Business Planning
  • June 19, 2022

Roadmap to recovery and growth: How does a business prepare?

Cash flow, liquidity and slow payments are a real danger for businesses in the Middle East. It has always been a challenge, but the disruption caused by the covid-19 pandemic has exacerbated the problem.1 After a tough 18 months, there are indications of green shoots with the opening of business, borders and wider vaccine rollout.

Companies now have two options: survive or cease, with the latter being the inevitable decision for many. However, proactive measures can be adopted to keep up.
The following five-step process can ensure a successful roadmap to recovery and growth.

1.) Digital transformation 
The e-commerce landscape witnessed unprecedented growth within the GCC, making it a primary revenue source or alternative solid channel. To recover and grow, businesses must meet the new demands of the consumers and go where the customers are – not where they exist. 

Companies that relied on a traditional brick-and-mortar model should transform their capabilities to e-commerce, apps, website, use online marketplaces such as Amazon, Alibaba, WeMena, Shopify, Noon, Tradeling, to name a few and grow.

Evaluate automation or digitization to reduce costs, time for routine manual tasks. Start small and do it in a phased manner.

2.) Pivot, Diversify and Divest. 
What worked pre-pandemic may not necessarily apply. Rethink your business model. If it's not sustainable in the form that worked before, as there is a significant shift in the market dynamics or consumer behaviour, consider a pivot. A pivot is a change in strategy without a vision change4. It does not mean changing your business model.  Many times, re-organizing one aspect or changing focus can be effective between success and failure.  

Use this phase to reduce debt through divestment measures.  If pivoting is not ideal, look at diversification of existing product and service lines.

3. Rethink
You cannot expect different results doing the same thing.

Be it your workplace, where how the team works, supplier relationships; raising capital; manage debts, opex, Capex, your marketing, forecast and so on. 

Take a step back, rethink those can be applied in today's environment and the future. For example, consider full-time remote working or hybrid model, outsourcing, contracting vs full-time hiring, crowdsourcing, and usage of collaboration platforms. Consider invoice/PO discounting, venture capital or crowdfunding as sources of capital. 

If it's overwhelming, set up a task force of Accountant, Lawyer, or consultants to review and forecast. They can guide you with forecast and, in a worst-case scenario liquidate, or file for insolvency or bankruptcy as per new UAE Federal laws. That could be a better way to restart.  If it does not fit in, acknowledge it away and find a better, more straightforward way.  


4.) Go where the customers are
PreCovid19, a business expected customers to visit their office or retail store, warehouse or vice versa at the customer's home or home. Be ready to adapt to changing customer attitudes and needs and create new and responsive digital customer journeys.3 

Businesses should leverage social media and new channels to go where the customers are, whenever they need and engage them. These include the flexibility of providing digital, physical, or service-based with omnichannel delivery and customer service model for consumers. 

5.) Quantify and qualify
'If it cannot be measured, it cannot be managed,' said Peter Drucker. Businesses should monitor KPI's and performance metrics to identify areas of improvement. This will attract additional consumers who perceive the brand as their number one choice when purchasing. It is paramount for businesses to ensure that the metrics used are consistently monitored and up to date. 
Although initial results may seem minuscule to what other companies have achieved, being patient and relentless will eventually lead to recovery and results. 

See the pandemic as a window of opportunity to reimagine how they operate – with a stronger focus on ensuring long-term value through increased flexibility, fairness and sustainability.


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