Your Post-Covid Growth Path

As murmured by wise sages through the ages; 'in our world of continuous change, crisis and opportunity are often two sides of the same coin'.

For the bold, this is an opportunity to reset, reimagine and reinvent one's business to not only survive but thrive in the 'new world' beyond.

Major shifts

There are six major shifts under way among leading companies looking to reposition themselves for the new world ahead;

• Digitalization/Automation - From automating administrative/operational processes to enhancing the digital customer experience to create the full digital enterprise. The COVID-19 lockdowns have forced new consumer habits across the board and opened their eyes to the convenience of online shopping. Customers now expect higher levels of convenience and reliability from their suppliers going forward - with less reliance on physical branches.

• Restructuring of Supply chains - Trust and reliability within supply chains has become a critical focus area more than ever before, as companies look to balance efficiency with responsibility and move from linear supply chains to integrated ecosystems and networks. Consumers are accelerating the drive toward greater transparency and real time feedback.

• Remote/Fluid/Smart Workspaces - Workplaces are being re-imagined, ensuring employee connectivity in an increasingly digital, virtual, gig-based context. Almost half of all people surveyed say they intend on increasing the amount of time they work from home (during working hours).

• Need for Enhanced Cybersecurity Measures - According to a study by cloud computing firm, Iomart, the first quarter of 2020 saw a 273% increase in data breaches compared to the same time in the previous year. Increases in online banking, ecommerce and remote working have all resulted in soaring cybercrime. Their research also showed that many businesses are complacent about cyber security and data breaches, with a huge 52% of respondents admitting that this was not a priority for them. The majority (70%) also said they do not provide cyber security training for all employees, which could result in a severe data hack and cause a huge drop in company value.

• Long-term value creation for ALL stakeholders, attached to a meaningful purpose - Some companies are having to reassess the very foundations of the organization, due to behavioral changes and trends (Retail, Travel, Hospitality etc). Is the company’s purpose still relevant and credible? Is the strategy fit for that purpose? Does the operating model support the strategy? In the future, capital and young talent are likely to shift from companies that focus only on maximizing short-term profits or shareholder wealth, to those that have a strong sense of purpose and focus on creating long-term value for a broader group of stakeholders.

• Social responsibility and environmental sustainability - Key focal points that have been given a lot of lip service over the years. This will be back on the agenda in greater force - as the effects of environmental degradation become more prominent and socially progressive movements continue to up the ante in driving change in governmental and business policies.

These shifts are not only being focused on within big corporates. Many SME businesses I've come across are investing meaningfully in these areas. Indeed, ALL start-ups we've engaged with in incubator programs or crowdfunding platforms have already assumed these as part of their business models.

Unfortunately I can still think of many businesses (including publicly listed ones) that still appear to be on the "wait and see" train, when it comes to these issues. It's unclear whether this is because they're hoping for a return to a somewhat familiar world or whether they just don't know what to do (or both). Either way, their inaction or ineptitude is another major opportunity emerging from this crisis, for those with a scent for blood!

Riding the Recovery Wave (or ripples)

In addition to prioritizing investment in favor of the six crucial areas, companies need to be fit and ready in order to ride the post-covid 'recovery' wave. Whilst an initial bounce-back may be sustained, the long road is likely to be a saw-toothed shaped period of low growth. Real growth will be about buying or taking market share, as opposed to benefiting from a rising tide for all. Businesses therefore need to be financially agile with a low and flexible cost base (smart outsourcing), able to withstand sudden shifts in demand as the saw-tooth shaped recovery continues.

Don't wait any longer if you have already - call your team for an emergency meeting asap! Discuss these matters openly, face the brutal truth and begin your shift.

Excelerate Co is part of a multi-disciplinary investment company, geared towards mentoring start-ups and dramatically improving the performance within small to medium sized businesses.

Feel free to make contact with us on info@excelerateco.com.

#growth #sme #startup #recovery #Digitalization