After the address of our Prime Minster Mr. Modi on 14th April, 2020, we all realised in our hearts that we are going to have to safeguard and watch for this “China virus” thing around us for a minimum of 15 days at least. We also knew deep down that this social distancing and quarantine could be extended depending on the fluctuation and seriousness of the local situation and circumstances. The point our hon. PM was making was very interesting. In the narrative of “Life versus Livelihood”, India is not ambivalent, and is not sitting on the fence. Instead India is distinctly and undoubtedly pro-Livelihood in its stand. This position can be fervently debated and discussed on parameters like time, resource and the present challenging scenario the country is facing. However I personally feel that this is India’s destiny in new emerging world order.
Since our childhood and even as we have grown to be cognizant adults, we never jump to conclusions and start intake of any specific medicine, whenever we start running fever. Instead, we first measure the temperature, we analyses the cause that may have brought down this illness upon us, we assess how severe and serious the situation is, and then act on it. In short, we have to be our own “Health Card”, ready with information about different the various parameters, affecting us. So, now if we apply same analogy for our business to derive the ‘Heath status’ of our business, what parameters would be pertinent to check? What factors would we have to take into consideration? Which aspects would be required to be controlled? Let’s take a look at the prime “Ms” of business.
- What is the cost of present FG (finished goods) stock which I can immediately convert into cash?
- How many days/months/hours will this raw material stock last?
- When we will get a refill of the raw material stock?
- What is the status of our supplier and his stand and situation?
- o What is my expected outflow? From whom we can ask/get any credit?
- What is my expected inflow? How we can we increase it, and expedite the recoveries?
- If we get a waiver to pay interest and EMI, how it will be helpful to me?
- Do we really need that extra working capital? If so, how much, really?
- Which banks are ready to give loans? Are their terms and conditions favourable to my business?
Man power status
- Whether all my employees in reach/ contactable? Are they in the same city of business or have they migrated to their home towns/villages?
- Are my existing team members still aligned and in sync with the work taking place at the moment (if any) or involved in planning for the future?
- Whether I have to consider alternative and new manpower? What about their training?
- What is the comfort, mental health of my employees and their ecosystem?
We definitely have the next 15 days in hand and we have to use this period for contemplation, collation and consolidation of our valuable assets and resources. We must make anticipatory preparations to face any scenario that might face us. For this, we pool our experience, imagination and knowledge, making multiple excel sheets and create manifold scenarios with various permutations and combinations, based on complex probabilities. This way we will not be caught unaware and land up in a hot bowl of soup, like we are swimming and struggling in, for the past 4 weeks. When all avenues begin to shut-down rapidly, we will at least have a guideline on how to open and find a way out through the fire exit! Let us discuss such and related issues in more such articles, that will follow herewith.
There is fundamental management sutra which is very famous, and we got to remind ourselves of it again and again… If you want to “control” measure it first ……………
CEO, Media Vidya
Founder and promoter of Media Vidya, Mr. Ajinkya Kulkarni who is a Social media researcher and Integrator, is currently pursuing a PhD in the subject. Interested academically in all forms Social media and its impact on Business, politics and overall society as whole for last more than 10 years. He is now a veteran on "On-line community- model for futuristic media" specifically focused on development process ,stake holders and observations by participating in knowledge communities.
He has earlier successfully run a software based business since 2001 that gives him a deep insight into the operation of the backend of the media business. He has studied the Indian SME segment as Business Analyst for more than 10+ years to provide business solutions.
He is also a Director and on the Advisory Board of an NGO and few companies lending his support for promotion of business and formulating evolving marketing strategies.
He presently resides in Pune, dividing his time between evolving and formulating business strategies for marketing and various activities, travelling extensively along the length and breadth of the country for various social causes.