Updated: Jul 9
By: Shennice Cleckley
March 2020 changed the game for many businesses. The culprit was COVID-19. Before COVID many businesses operated on a model that was believed to withstand the test of time, yet no one could have predicted a global pandemic. Today as we recover and reopen, business owners are faced with finding a resilience business model to ensure in the event of another major disruption, they will be able to survive and hopeful thrive.
Resilience business models are a part of a business continuity plan. As in the case of COVID-19, a resilience business model should have components that leverages technology, operates with minimal workforce and ensure that even with a total disruption of service the business could continue to function.
Take a phased approach to developing a business model. Here are the steps
Phase 1- review your current model and identity any outside dependencies on your operations. For instance, do you require an outside vendor to produce a product? Does your business require a large workforce to operate.
Phase 2- investigate alternatives should your dependencies become halted. How will you be able to produce your product or operate your business. For instance, can you operate with a minimal of 3 employees instead of the ideal 10? What would their roles be? How would your hours of operation and possibly your offerings change with a skeleton crew?
Phase 3- do a financial analysis as to the base operating cost for your current model and your resiliency model. What will it take for you to be profitable for both? Do you need to change your cost structure or even seek out different more local vendors for your materials?
Phase 4- Design a working plan of action. Have the plan ready to execute.
Phase 5 - Execute changes when needed- you may find out that portions of your resiliency model may be more aligned with your current state of business. Be clear on the current needs of your business while taking into account your employees and your customers needs as well.