Many business owners are wondering during this time as to what are the different strategies to look at. An important question in this situation is as to how this Covid 19 affecting the economy in terms of supply, work, government response, income levels of people, lets have a look below.

Another important question in this situation is how long it will last? A vaccine normally takes few years to be ready to fight against a virus. There are many possibilities that may arise based on how long this pandemic will last. Lets have a look below on various possibilities,

What are the different strategies, that can be looked at, based on how long this pandemic will last?

There are many factors to look at such as staff safety, managing cash flow, preparing realistic projections, impact on operations, postponement of costs, keeping stakeholders informed, claims/disputes, communication with clients/suppliers etc.

So what are the best business practices?

What are the immediate to mid term action plans that companies can look at?

How do we project our financial performance for next 6 months? In times of uncertainty, it is very critical to develop a very specific cash flow considering the current marker conditions.

How do we communicate with our customer, suppliers and our very important employees? Decisions taken today will determine how will the company navigate through the troubled times. The positive part in this is that all are in the same boat so whole community understand the current situation. Conscious efforts blended with realistic business strategies can help counter the current situation. One of the important point to consider in this situation is that management shall view each cost as variable cost and not fixed cost, which mean that attempts shall be made to negotiate the fixed costs of the company as well. Local governments are giving various incentives from all sides to help business community cope up.

Cash flow is going to be the deciding factor in smooth flow of operations and to navigate through this difficult time. One of best strategy in situations like this is control the “cash in bank”. The good paying customers might behave differently in uncertain situations, we cannot blame them as they are also facing similar challenges. Some tips that may be useful are as below,

It is very critical to keep your stakeholders well informed of the plans. The confidence of owners will make it easier to pass through the difficult time.

Thank you and we are always your side.

Article prepared by: Rishi Chawla – Partner (Business Advisory)

This document is only for information purposes and should not be construed as advice. It does not necessarily cover each aspect of the topic with which it deals. If you would like to discuss any related matters, please drop us an email at info@premier-brains.com or call us at + 971 4 3542959.

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