Insights | Blog
Preparing for Uncertainty
Dealing with uncertainty is always problematic for any business, no matter what industry. Given what most of us just went through with COVID-19, there are some steps your business can take today to put you in the best position to weather the storm in the event of another virus outbreak.
Liquidity – As they say, you want to hold as much dry powder as you can and this means not only micro managing cash but also working with your senior lenders and key creditors and arranging for additional credit and/or modifications to existing loan agreements. It’s always good to run a couple of “what-if” scenarios so you can anticipate the steps you may have to take to offset the impact of another outbreak. Take a good look again at available government loan programs such as the EIDL or Mainstreet.
Employees – Keep your staffing to minimum levels and where you haven’t done so already take the steps necessary today to make it easier for employees to work from home. This includes taking a good look at the security of your networks as sensitive company information will continue to be exchanged across a vast global network. With the everchanging school scenarios, your business will have to be more flexible and allow parents to deal with unforeseen changing school schedules. Also look at your talent levels and ask yourself if they have the skillsets to compete in the new marketplace.
Topline – It’s time to reassess where your revenues came from and how you generated new leads. Whether its increased volumes or gains in market share through ecommerce or communication (i.e. marketing) is key with both existing customers and to the marketplace in general.
Bottomline – As always, move toward reducing your fixed overhead and discretionary spending. The restart of the economy gave many of us an opportunity to experience first-hand what items are mission critical and what items can be reduced or eliminated altogether.
And don’t forget the three most important words, Planning, Planning, Planning.