The new year usually begins with lots of good intentions and a fresh budget plan. And now? Corona throws everything out the window.
All budget plans have been thrown out the window. And yet the management team should somehow keep an eye on business development, plan something and measure it at some point. At the start of the pandemic in April 2020, I thought to myself that it would be over quickly. And I was a little irritated when my son-in-law, who is a doctor, said that he didn't expect the pandemic to end until the end of 2021 at the earliest. I thought I had misheard him and corrected him to 2020. "No", came the prompt reply, "I actually mean 2021". It's now 2022 and the end is not yet in sight.
Rolling instead of static
It's not just the 5-year plan that has been put on hold for the time being. The ice is even thin for the planning of the current or upcoming year, and it may break. Your planning is plunging into ice-cold water. Instead of planning well in advance, it makes sense to set detailed targets for the next two or three months only: A rolling forecast replaces a static business concept. This allows you to react much more flexibly and quickly to any disruptive factors. Although this is more work, it is the first choice in unpredictable circumstances. In this way, you avoid shock paralysis for your company if the ice does break.
Cash flow on top
The fact is that cash flow suddenly becomes crucial. Now it is no longer ROI or EBIT that are at the top of the priority list for budget planning, but liquidity. How are things looking in your company?
If you have any questions or problems, it is best to contact your trusted tax consultancy. They will help you with government bridging aid and give you individual tips for managing your business.
The present challenge
Difficult business environment, unpredictable delivery times, shift work that is difficult to plan. Keyword delivery times: Instead of 1 to 2 days, it suddenly takes 6 to 9 months for raw materials or goods to arrive. Skilled workers are missing, employees fall ill. The prices for chemicals are exploding. One piece of bad news follows another. Especially in these rough seas, managers are challenged to plan complex scenarios.
Talking instead of gnashing teeth
The security that is so important to us is now turning into a false sense of security. Fear is suddenly rampant. Managers have two options: Grit their teeth until it grinds between their ears. Or they can talk to colleagues, friends, family, a coach or psychotherapist about the loss of control they have experienced. Although I believe that the second option is the better choice.
It goes on ... (also) with Corona. I'm not allowed to look into the crystal ball to see whether everything is over with the 4th wave or whether the 5th, 6th or even umpteenth wave is still rolling in. This is why many are experiencing a loss of control not only on a business level but also on a psychological level. Many processes are based on planning, which is no longer possible.
Bosses are only human
Bosses belong to a species that is particularly worthy of protection. So what can you do for yourself to get through this uncontrollable time in a reasonably positive way despite the crisis mode?
Here are some concrete suggestions on how you can deal with the loss of control:
- Saythank you: for the teeny tiny things in life. What were you happy about today? The smile of a friend? 10 minutes of sunshine when the fog lifts? The delivery of chemicals arrived earlier than you had hoped? Make a note of 3 things you are grateful for every day over a longer period of time.
- Hobbies: What is your favorite hobby? Now is the time to dedicate yourself to it again. Or find a new hobby. What have you always wanted to do? And today is the right time for it?
- Sport: is not murder. It helps you to become and remain more resilient. The gym is currently out of the question. Instead, the good old exercise bike is purring and rowing machine guides are booming. The happiness hormones in your body are doing somersaults and are happy when you exercise. They thank you with less stress and more balance.
- Social contacts: Make phone calls until your ears burn. Get dressed up for a Zoom meeting with friends and enjoy an after-work beer, a glass of wine or your favorite chai latte together.
Fancy a business coffee together?
My free offer to you:
Q&A session with a cup of coffee or tea on Friday, 29.1.2022, 13:00-14:00 to exchange experiences with your questions and my answers.
