Most business post-Covid is struggling. Small and large have been hugely impacted during the COVID lockdown. Many countries are now gradually opening up and permitting firms to recommence operations. Customers, too, have been hugely traumatized by this experience. They have become ultra-cautious of their health and well-being. Employees have been affected. They are worried about their future and the security of their jobs. Suppose you are laid off and looking for a new job. Promoters have been financially hit. Most of them have laid off a lot of their workforce. Now they have to restart their operations.
Some questions that are plaguing their mind are:
- How much should I invest in recommencing the operation?
- Who should I hire back, and at what wage?
- My loyal and hardworking employees are approaching me and requesting to be hired back; how many and at what terms should I hire them back?
- I do not anticipate demand to come back strongly. I will not need as much space as I have currently rented. How should I renegotiate my lease?
- I need to reduce my debt burden, but how do I renegotiate terms with my debtors?
- How do I restart and earn a profit? etc. etc.
Based on my business consulting experience, I would outline the following broad recommendations:
Create a post-COVID business mind map in which you visualize the projected business. This visualization should include the role of people, processes, and technology that will help you optimally operate your business. This will, in all probability, require restructuring your entire business. You will need to leverage the relief and incentives the government offers fully. In addition, you will need to:
- Take a close look at your balance sheet and analyze it carefully.
- Look at the income and cost streams carefully.
- Analyze pre-COVID cash flows and prepare post-COVID cash flow projections
I know these are broad suggestions. Review them carefully, and you will be fine. Take care of your family and your health. I wish you all the best. Please protect yourself from this disease.