COVID 19 has left us in a lot of destruction, now, this is the business recovery stage. Over 73% of all businesses and companies have taken massive financial hits due to the crisis, as per a BDC survey that interviewed 600 Canadian businessmen.
COVID-19 has disrupted businesses all over the country. It has left us in a lot of destructions, Now, this is the business recovery stageCOVID-19 has disrupted businesses all over the country. Over 73% of all businesses and companies have taken massive financial hits due to the crisis, as per a BDC survey that interviewed 600 Canadian businessmen.
Over 73% of all businesses and companies have taken massive financial hits due to the crisis, as per a BDC survey that interviewed 600 Canadian businessmen.
Given the unpredictability at hand right now, following the 7 steps mentioned below can help your business make it through the pandemic and remain operational until it blows over.
- Take Care of Security and Health Concerns
Have you taken measures to protect your employees from the pandemic? Can your employees carry out their duties remotely? Is there a contingency plan to ensure that a breakout in your office does not paralyze your business? Are you expediting paperwork requirements to alleviate financial distress among laid-off workers and employees?
These questions ought to be the first concern on your mind.
- Develop a Communication Strategy
There’s no such thing as too much communication. Ideally, your communication plan must target your suppliers, customers, and employees. Craft a concise message from your business, send out updates regularly, and make use of technology to optimize your communications. Needless to say, communication is a sensitive job that requires someone talented and trustworthy at the helm.
- Contact Your Customers
Call your customers up and ensure that their orders haven’t been canceled. While it’s not necessarily important to renegotiate, you might have to defer receipts for a while, which could choke your cash supply. If your customers still have debts to clear, contact them immediately and ensure they can still honor their debts. Should your debtors express difficulty in making good on their debts, renegotiate and offer better terms. You can also use this opportunity to offer additional services that could be of use to your customers.
- Contact Your Suppliers
Make sure that your suppliers are capable of making timely deliveries. A delay in suppliers could muck up your whole operation, making it more crucial to stay on top of things with your suppliers. If possible, negotiate for deferred payments. In a situation like this, it’s absolutely essential to have a healthy cash flow in your business. If your current suppliers are unable to honor their commitments, move fast, and find suppliers who can fulfill your business requirements.
- Evaluate Your Resources and Capacity
You’ll also need to modify your health and safety practices in the company. It’s important to let customers know what measures you’re taking to protect these products from COVID-19. This will cost you money – estimate how much it’s going to cost you and make a plan.
- Evaluate Your Cash Flow Every Week
Cash is king, especially during an economic crisis. Make a list of all your cash inflows and outflows. See where you can bump up the inflows and check for areas to prune when it comes to outflows. The focus must be on preserving cash in the business, which will help it overcome difficult times in the future. Cut operating expenses wherever you can and work with your accountant to make an accurate cash flow forecast. It will help you figure out the amount of working capital your business needs and how much you might have to borrow as a working capital loan.
- Stay Prepared for Recovery
We’re eventually going to get through the pandemic – just focus on keeping your business alive until then.
During the business recovery stage, you’ll need to drum up new orders, purchase materials, start hiring employees, get new supplies, and bump back operations to pre-COVID levels. During the recovery stage, you’ll need to spend money attracting more business. However, it’s going to be worth it – work it out correctly and this pandemic can be a goldmine of opportunities.