One of the key elements of a successful business is its ability to adapt when necessary. For example, maybe when a pandemic starts and you have to make major changes to how your business functions to be able to stay afloat. Or, maybe when new technologies enter the playing field and you can choose to maintain where your business is or invest and drastically increase your productivity… Your business’s survival depends on how well it’s able to adapt.
Adaptability is all about preparing for the unknown. It’s considering anything and everything that could go wrong and making a backup plan. As a small business, you can have both advantages and disadvantages when it comes to adaptability. In the end, the support you have in your business backend will determine if your business is truly prepared for change.
Making your business adaptable means you’ve made your business into one that can handle pretty much anything – but how do you know what to prepare for? While you may be able to predict possible situations just by looking at past economic fluctuations and the current economy, you will not be able to get a grasp of the full picture. Much of what impacts businesses, particularly businesses that are considered small businesses, happens behind the scenes.
As a small business, you can be impacted by changes in supply and demand as well as supplier price increases or stock. Although not as drastic as a pandemic, situations such as those still require a plan – for example, where will you find your supply now or how will you adjust your pricing to match the increase in supplier pricing?
Typically, you can solve many issues and create an adaptable business by being aware of your finances. Rather than periodically “checking up” on your accounts, you want to be able to access ongoing reports that show real-time the financial health of your company. Additionally, you will want to cash reserve to ensure that in any situation you’re able to mitigate financial risk.
Finally, when considering if your business is prepared for any situation, you need to evaluate whether or not your team is adaptable. An adaptable team is able to take a creative approach when necessary and can step up in strenuous situations.
Establishing a department virtually or working with a virtual team is one of the best ways to ensure adaptability. Virtual teams have the ability to not only step in and support during periods of rapid growth but are also able to navigate slow periods or periods of decline with ease. In some cases, virtual teams are able to negate the impact during periods of decline.
Ready to establish your business’s adaptability? Connect with the ModVentures team today and outsource your accounting with our Client Advisory Services.