COVID-19 poses a considerable threat not only to our health but also to our businesses.
For many businesses, the steps the governments have imposed to contain the virus have resulted in a sudden and dramatic fall in demand for products and services, labour shortages and supply disruptions.
There are a number of actions you should consider to help manage your business through these uncertain times.
These actions should assist your business to survive and place it in the best possible position for revival.
Below is a list of actions you can undertake to help your business manage this difficult time.
We encourage you to speak with your accountant or other professional advisers to help you manage through this crisis:
1. Keep your financials up-to-date
To be able to make the best possible decisions, you need access to the most up-to-date information on the financial position of your business.
2. Act now to improve your cash flow
Improving cash flow, whether it be by getting more cash into the business or reducing cash leaving the business, or both, is essential to business survival. It should also put your business in a good position to take advantage of the recovery. You need to establish a Cash War Chest.
3. Increase online sales and keep in contact with your key customers
With customers staying at home, look to reach them through online sales platforms. At a minimum have an Ebay store and look at an Amazon store front. Then consider whether a Shopify website will work.
4. Develop a contingency plan.
If possible, put in place a plan to help your business continue operations if the government imposes tighter restrictions, such as staff working from home. Also consider is there an opportunity for your business to change direction with new service offerings.
5. Keep regular contact with staff
Remain positive but also be upfront with staff on the state of your business.
6. Keep in contact with your key suppliers
Talk to your key suppliers about their ability to deliver reliably to you during the crisis. Consider alternative suppliers.
7. Do a regular financial health check on your business
Knowing the financial health of your business is essential to assisting you in deciding what you can and should do to manage through the crisis.
8. Take time to do a reality check
Ask yourself some questions about the performance of your business before the crisis to help you determine what you want your business to look like post-crisis.
9. If you are in financial difficulty, seek professional advice asap.