Finance and Accounting – It is all about cash
Cash flow is what matters for businesses. The fundamental of finance and accounting in the day to day business will become necessary. Simply put, you have more money in your bank account at the end of the day today than you had at the end of the day yesterday.
Growth and market shares are significant, but they need to generate cash. You must have enough money in the bank to support your project, and you need to account for money in terms of months or even years. Projects need to start generating cash because financing is tight, and you can’t afford to lose cash every month.
Marketing – what customer value
Marketing is all about the value of your product and service to the customer. Business 2.0 (post-COVID) is all about bundle services and a fixed price. Your product and service may be the best, but if the customer does not value it, you have lost. It is quite simple.
Here is an example: you need to price an accounting service for the restaurant industry. Using all the data available, experience for the last 15 years, you came up with a variable cost (X) of a few hundred dollars, then doubled the price + 0.5 unexpected factor to about 2.5X for a healthy margin. Now, you need to look at the price from the customer’s perspective. You need to communicate and compare your bundle pricing is far lower than what the customer may pay individually. Additionally, in the business 2.0 environment, you also need to account for the runway that small restaurants may need to pay you the 2.5X. You need to create several bundles packages to capture the small struggling restaurants.
Strategic Planning – It is all about the right niche market
This one is easy to say, but extremely difficult to do unless you understand your business, your competitor, the environment, and the industry. A right market niche can generate growth and excellent profit opportunities, and we have survived and thrived for the last 30 years.
Leadership – It is about the team
I understand that capability will only take you so far. More important will be the ability to lead and unite a team that has survived the multiple recessions (1980-1982, 1990-1991, 2001, 2007-2009).
Cultural understanding
You may not be going overseas, but you have to understand the cultural ancestry that exists in your local community.