When you take into account the many obstacles and threats that were carefully avoided along the way, owning and running a successful company is an incredibly rewarding experience.
No company can expect a perfect business environment. To succeed, a company must be able to identify and minimize internal and external threats.
When a business plan includes obstacles and threats that are known to the company, it is an essential document. Even when an event occurs that could have serious consequences, such as COVID-19, the business with the best plan and the ability to adapt quickly will survive.
Many companies have shown their ability, speed, and leadership in meeting demand during the pandemic. In place of their normal products, many manufacturers are producing PPE (personal protection equipment). Luxurious clothing brands are, for instance, now available in a wider range of sizes. producing gowns and face masks.
Everyday, you need to keep an eye on your business and be prepared to deal with any threats.
What are the common obstacles that startups and enterprises must avoid or overcome in order to be successful?
PEST Analysis
Some events, like Coronavirus will threaten the viability your business. List the events that will affect your business. PEST analysis Identifying threats and opportunities. COVID-19 taught us that adapting to changes is the most important thing.
Politically,
We saw with the COVID-19 outbreak that how governments respond depends on their leadership. In recessions, governments take a more active role to improve the trading environment. For a while, the government may relax compliance requirements and ease other regulations. Any action taken by the government can either be a threat to business or an opportunity.
What’s really interesting is that it’s usually during recessionary times when startups start to rise. Many blue-chip firms today got started because, as the saying goes: there’s an opportunity in every crisis. during an economic recession.
Even choosing to continue operating as normal is a risky action. Revert to your plan of action and navigate the rough waters that external events may have on your business.
Companies with strong financials include cash reservesIt can help you overcome short term sales stagnation. When the going gets tough, employers who aren’t prepared for a big drop in sales may sack staff, increasing unemployment. As more people are out of work, the crime rate increases, which includes commercial and residential burglaries and break-ins. Your plan should include investing in technology for monitoring, securing and protecting your assets.
Social Media
Environmental and socio-economic factors, such as natural disasters and viral outbreaks, can pose a serious threat to your company. Prepare for the unexpected, and always have a plan of action. Here, insurances are important in providing assurance that risks will be tempered, if they are not eliminated. In your plan list the apparent threats to your business, for example, if your customers no longer need your product or service – what action can you take?
Technology
Your company can benefit from technology, but it can also be a danger. Your business will not be able to compete with your competitors if you don’t have the right systems. Not only is technology a broad term, it also includes security systems such as cameras and surveillance equipment that are required to protect physical assets.
The new normal is social distance. long-range access control systems Businesses are eager to continue operating even when there is a restriction on movement. For example, a long-term RFID can be used to lock and unlock a building, as well as for contactless access.
Cybersecurity risks including AI-assisted ransomware, is another common threat. IBM claims that the average cost to businesses A data breach costs $3.86million.
Itemise in your business plan where technology could be a danger, i.e. What will you do if your business does not have xyz systems? Manage technology risks through investing in infrastructure and technology, keeping your systems current with data. Plus, forecast when it is the right moment to switch gears with a new technology that can change everything.
The following is a summary of the information that you will find on this page.
You can be confident in your endeavors when you have a business plan. It’s important to know that there will be challenges to overcome, and opportunities to seize. Seize the opportunities and mitigate threats to thrive in 2020.
