Operations Resilience: Simple Strategies for Savings and Revenue Planning
Operations Resilience: Simple Strategies for Savings and Revenue Planning
By Michael Waite
In the dynamic world of business, having operations resilience is key to navigating uncertainties while ensuring stability and growth. But how exactly do you fortify your business against potential challenges?
When you don’t need capital, you will often find banks and investors are far more willing to offer terms for you to use their money. And when you need to save money, operations costs seem to pop up from everywhere to offset cost savings you make. Anticipating these “rules of thumb” can position your company, team, and leadership for much greater success.
As you reflect on your business budget or projection for the year ahead, here are 2 impactful steps you can take in 100 minutes to increase the resilience awareness of your business:
1. 24-month Cash Projection (55 minutes):
Start by running two scenarios: a growth scenario and a downturn scenario. Whether it's a 20% increase in growth or a 20% downturn, these scenarios will shed light on the capital needed to thrive or survive in each situation.
Don't get bogged down by details; focus on completing the exercise and then reflect on any vulnerabilities in the analysis. Remember, refinement can always come later.
To make things easier and simpler, I’m attaching here a curated template you can download (no strings attached)
2. Operations Runway (40 minutes):
Initiate a brainstorming session with 1-2 key stakeholders to identify areas for cost reduction. This exercise requires sensitivity, so approach it with care.
Have each participant spend 15 minutes individually brainstorming ideas for reducing spending.
Set a rule that no immediate action will be taken—this is simply about getting ideas on the table.
Aim to brainstorm cost reduction measures by 10% or more.
Afterward, spend 25 minutes aggregating the lists, grouping items together, and discussing them for shared understanding.
This will provide a shared starting point for meaningful cost reduction actions.
Final thoughts
Regularly conducting these exercises can have a significant impact on your business's resilience. Presenting the findings to key stakeholders can amplify the effects, fostering a shared understanding and commitment to action. Whether preparing for growth or safeguarding against uncertainties, proactive measures like these can lead to better decisions and outcomes for your company.
If you anticipate needing capital (debt or equity) in the future, consider exploring our "Calm Capital Raise" thought story for insights on navigating capital raises with poise and confidence.
Ready to take your business's resilience to the next level? Go ahead and book a 101 exploratory call. Contact me to Email or let's chat through LinkedIn.
Wishing you every success in your growth and resilience leadership.
Michael Waite, MBA, CEO and Founder of Waite Partners.
20+ years experience leading innovative entrepreneurs, medium-sized businesses, corporate teams, and communities organizations to achieve growth results.