As the COVID-19 situation impacts on us daily, it is imperative to take decisive action focusing on managing our cash. Here are our ten top tips: –
- The way you handle this crisis will be remembered. Ensure flexibility with Customers which will build Goodwill and taking prompt action is more beneficial to team morale.
- Communication is key – Ensure to communicate with Suppliers, Customers, Investors and Peers. Utilise all forms of Social Media available (e.g. Zoom) even if it’s just to say you’ll be in touch soon.
- Positivity – Keep yourselves and your staff positive both physically and mentally.
- Look for opportunities whether by making pivoting decisions or whether to merge, exit or form new partnerships.
- Be open to advice – Liaise with advisors who have dealt with previous crises.
- Preserve cash by taking payment holidays where available (i.e. VAT and loans), reduce or ‘furlough’ members of staff where possible (i.e. employee kept on the company payroll but 80% of their wages will be reimbursed by the Government), reduce hours or if possible. Also negotiate with Suppliers for better terms in this time of crisis.
- Bringing in the Cash – where possible considering giving discounts to keep existing Customers and bring in new ones, chase up any outstanding payments.
- Review and Re-forecast for the ‘worst case’ scenario. Question every previous assumption and assume this will last for twelve months. Ensure to update your forecasts regularly with real data.
- Delay any fundraising – At this moment in time, there will be less money available as any Investor will be more understandably more cautious focusing on supporting their existing portfolio.
- Be a ‘Winner!’ – By demonstrating resilience and excellence will help you to come out a Winner.
If you want to find out anything further about this topic then please feel free to call on 01494 786000, 0207 240 2000 or 07961 116321. All conversations will be in strict confidence. You can also email firstname.lastname@example.org
This article is for information and interest only. It is not a substitute for full professional advice, which will take in to account the specific and individual circumstances. Navigate Business Recovery Limited cannot accept any responsibility for any loss arising as a result of any person or organisation acting or refraining from acting on any information