Covid-19: Time for businesses to reflect and prepare

During July I posted a video highlighting 3 key issues for businesses to address coming out of lockdown; and at the beginning of the month, it had a ‘back to work’ feel about it, with schools returning and offices opening up. It doesn’t seem to have taken long for that bright feeling to evaporate, with infection rates rising and a tightening of lockdown restrictions now being announced.

So, what does this mean for businesses and how do business owners respond to changing circumstances? Although the Chancellor has offered some further support – and we await the Banks and HMRC’s practical interpretation of these -, I believe the 3 key issues I highlighted are still relevant:

Your business market is likely to have changed in some way and may be changing again. You must stay alert and strategically agile to the market and stay close to your customers/clients, communicating with them regularly.
Furloughing is coming to an end. There is now a (much reduced) replacement scheme , but this doesn’t change the main issue, being to critically evaluate your operations and look for productivity/cost gains. Should you be investing in technology improvements to allow greater/quicker market access or reduce operational costs. It is tempting to preserve cash, but real improvement rarely comes without investment
Cash!!! Without it a business won’t survive… and without profit it will wither. So, a comprehensive financial forecast taking a realistic look at sales, costs, working capital and investment should be undertaken, critically examined, and maintained – it is not a one-off exercise, it is an ongoing process!

One cannot guarantee survival in these challenging times, but we can guarantee that management teams that address these 3 issues will have a far better chance of surviving, and more than likely, prosper than if they ignore them.

For more information or to discuss your financial management, forecasts and planning, please do not hesitate to contact Playfair Partnerships.

[email protected]
https://playfairpartnerships.com/contact-us/

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John Playfair,
Senior Partner, Playfair Partnerships

My earlier video: