The COVID-19 pandemic has wreaked havoc to not just Trinbagonian’s physical health – but also financial. The cripple can definitely be felt amongst the nation’s Small and Medium-sized Enterprises (SME’s)
From the desk of our Risk Manager in London, read on for 6 + 1 steps that you can take now, to rebuild your post-pandemic business.
This article is a 4 min read.
As vaccines roll out and economies open, it’s time to assess the status of your business which may have struggled mightily over the past 15 months; and plan the rebuild.
Step One – Assess The Aftermath
Produce an accurate balance sheet and income & expenditure statement. You should also prepare a comparative analysis of sales and expenditure pre and post pandemic to analyse the true impact of COVID-19 on a line-by-line basis. And a cash flow forecast acts as a map that charts the steps needed to ensure your business recovery.
Step Two – Is Your Business Plan Still Viable?
Your pre COVID-19 plan may no longer be viable because society and the business environment has moved to a “new normal”. What does this mean for you and your immediate competitors? Reassess your strengths, weaknesses, threats and opportunities.
Step Three – Do You Need External Funding?
Unless you built up large cash reserves, it’s likely that you may need working capital. As you approach prospective lenders, consider what collateral you have available to secure any proposed lending.
Also consider consolidating your loans into one new facility as this process can improve the cashflow impact on your business and may also lengthen the overall tenor of your facilities giving your business more time to recover.
Step Four – Revamp your Budget and Strategic Plan
Revamping your budget may appear to be covered in the earlier steps but it’s only once you have an indicative term sheet from a lender will you be able to factor in the cashflow impact of any new financing.
Ensure your plan is attainable. While the future level of sales may be outside your control, keep a check on what you can manage – have a budget for expenditure and avoid unnecessary costs by monitoring expenses against your budgeted plan.
Step Five – Develop a realistic timeline for rebuilding
While you may wish to see your business recover in quick time, it is important to be realistic. If you manage to get ahead of your plan, that’s great; if you get behind, look at what is not working and don’t be afraid to try a different approach.
Step Six – Create A Contingency Plan For The Next Crisis
Build a business plan and by extension a business that allows you to build up cash reserves. You have to consider the unexpected, even beyond the usual “rainy day”, because the next crisis, like the pandemic, may be a long and intense hurricane season.
