COVID-19 presents a significant threat not only to human health but also to business. For many businesses, likely moves by governments to contain the public health risk may result in a sudden fall in demand for your products or services, labour shortages and supply disruptions. As part of a comprehensive risk management strategy there are a range of actions you should consider taking now to prepare your business to navigate through the crisis and be prepared when the time comes for recovery.
Below is a list of actions you can undertake to help your business manage through COVID-19:-
1. Update your financials and keep them up-to-date
To be able to make the best possible decisions in a difficult environment, you need access to the
most up-to-date information on the financial position of your business.
2. Do a financial health check on your business and repeat regularly
Knowing the financial health of your business is fundamental to assisting you in deciding what you
can and should do to manage through the crisis.
3. 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 fundamental to business survival. It should also put your business in a good
position to take advantage of the recovery.
4. Develop a contingency plan setting out how you will operate your business should the
government impose tighter restrictions
If possible, put in place actions to help your business continue operations if the government imposes
tighter restrictions, such as staff working from home.
5. Keep in regular contact with staff
Remain positive but also be upfront with staff on the state of your business.
6. Increase online sales and keep in contact with your key customers
With customers staying at home, look to reach them through online sales platforms.
7. 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.
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 early.
For more information contact Mark Somes.