COVID-19 has affected the economic well-being of several start-ups and SMEs all across- Nepal. In order to understand how should these businesses adjust to current uncertainties of the market, we invited Mr. Anup Tamang, Managing Partner at Biruwa Advisors Pvt. Ltd. to be our guest in the podcast episode. Mr. Tamag has given some wonderful insights on : how business can strike the right balance between : financial and operational efficiencies, ensure employee- well-being , and harness technology to remotely manage work during these daunting times. You can watch the full episode : Tips on remotely managing your business during COVID-19 lock-down here.
Following are the key points of that conversation:
- Making strategic decisions to reconcile financial implication of lockdown.
Recent developments have affected all businesses in different ways. Businesses have to make some strategic decisions related to : restructuring of business model, considering new modes of delivering services, and switching from fixed cost to variable costing model.
To aid in making these strategic decisions, businesses can consider relevant costing principles , choose between continuing or discontinuing certain operations as well as make a choice to relocate to a cheaper location.
Similarly, it is essential for businesses to conduct scenario planning so that business owners can estimate: level of resources they will have, how long those resources will last, pricing strategies they will have to adopt, margin they can retain and sales targets they should meet to break-even.
- Ensure operational efficiency while you adopt work from home policies.
The key to ensuring operational efficiency is to make sure that businesses have plans in place, and those plans are discussed with team members. Similarly, inputs from team members have to be taken into account in designing those plans.
Secondly, businesses should take commitments and access the capacity of team-members who are working from home.
Moreover, your business structure should follow your strategy and it should define how you move forward.
Lastly, it is equally crucial to communicate with your team and give clear instructions.
- Making decisions in uncertainty.
The situation that entrepreneurs are in is very unpredictable. If you do not have sufficient information to rely on it is okay to not make any decisions because delaying a decision is also a good decision. For this business owners might have to evaluate their organisation’s capacity, and assess how long they can postpone their decisions. It’s a wait and watch situation for all of us and companies can define their timeline based on their organisational capacity.
- Role of technology in overcoming barriers.Technology has made it possible to coordinate tasks for businesses. Apps like: Calendar, Trello, tracker sheets and other telecommunication platforms have given enterprises a chance to implement work from home policies. Similarly, the online payroll system has allowed businesses to make timely payments. Hence, in many ways technology has allowed businesses to bring efficiency in their operations and to cope with current situations.
- Using excess or freed-up capacity for organizational development.This situation has given some extra-time to founders and business owners to think how organisations can build their business, add value to business processes, and look at your business from a bird eye’s view. That’s really not possible when you caught up in the motion while being involved in day to day operations.Hence, with the freed-up capacity you have an opportunity to take a step back and look at things from an analytical point of view.
Thank you Mr. Anup ji for your insights!