Out and About with John: Help to Survive in Business during and after CO- Vid19

In a past life I operated the family business for over 16 years. We went through the highs and lows of business including the recession we "had to have", 20% plus interest rates, high bank overdrafts, high level local unemployment, and the realisation that insolvency was at the door.

One of the lessons learnt from surviving those days, and we did, was to seek professional help and to stick to what you are good at. We stuck (on advice) to what we were good at and sought that much needed professional help. That help got us through some very torrid times, in fact without that advice, help, and ongoing support, we would have been just another number in the bankrupt court listings.

Co-Vid19 and what I see around our area is a similar business scenario and I reproduce the following with links, in an effort to perhaps help local business through these testing days and beyond into recovery. The information comes from the very same professional advisor that saw us through those torrid days years ago, and who still is our financial advisor/accountant etc.

On agreeing for their booklet to be shared the company principal said "I am more than happy for you to reproduce the information – if it helps just one small business survive these extremely difficult times." Reading this will cost you nothing but it might just save your business.

Here is the preamble, for the complete booklet, I have included a link to the website of Sage Business Group. https://www.sagegroup.com.au/covid-19-resource-hub

Business Recovery from Covid-19

The COVID-19 outbreak has impacted, and continues to impact, businesses in different ways, ranging from minimal to existential threat. Global efforts to contain the outbreak through mobility restrictions caused drastic shifts in consumer demand and behaviour, supply-chain shocks and operational disruptions.

Governments are easing restrictions in stages and therefore businesses will recover at varied paces based on geography and industry.

Several scenarios exist for what the post-COVID19 'normal' will look like. The current experience has no doubt reshaped business practices and consumer behaviour, many of which will lead to some permanent changes. What those changes will be, time will tell.

Evaluating how you believe your market will operate post-COVID 19 will help you determine what products and services you should be offering – whether you continue with the same offerings, or need to adapt or pivot in line with expected changes in consumer preferences and behaviours.

An evaluation of how your business was operating before the crisis will help you take stock and understand your operations to give you a clear picture of where to start in the recovery process.

Business Recovery Overview

During the recovery phase, many questions will be asked of the business.
Uncertainties will remain but less so than during the initial phase of the crisis.
The status of supply chains, customer demand and operational capacity will be less vague.
Companies will need to continuously monitor their financial performance – much more so than prior to the crisis.
Cash flow forecasts should continue to be produce at least weekly and their must be a continued focus on cost control and cash collections.
The recovery is the perfect time for the business to pivot and create alternative revenue streams, or look to focus on core business

AREA RECOVERY

Finances Determine your financial position and health

Cash flow Do you have the resources to meet your immediate cash flow commitments?

Performance Evaluate the effectiveness of your business operations and make changes

Customers Evaluate how your market has changed and consider how it may change further

Suppliers Reconsider your suppliers to reduce supply chain risk

Strategy Explore options for the business to change its business model

What do you want your business to be like after COVID-19?

Do a SWOT analysis
Identify restructuring, disposal, and merger and acquisition opportunities
Establish a new corporate plan
Update budgets for the new corporate plan
Build lessons learned from the crisis into your business
Funding Negotiate debt facilities and covenants

Staff Re-evaluate your staff arrangements to match your new business

Technology Identify your technology needs to meet your new corporate plan and invest

I recommend you take the time to read the booklet on Sage's website as per the link below. They have well over 25 years experience in this field and have assisted many businesses to survive and thrive.

I also take this opportunity thank Michael (Company Principle) and the team from Sage for his agreement to share their intellectual property so freely, and for their ongoing, high level financial advice and professional service.

All this will cost your business is your time