Businesses – small and large have been hugely impacted during COVID lockdown. Many countries are now gradually opening up and permitting businesses 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, the security of their jobs. If laid-off finding a new job. Promoters have been financially hit. Most of them have laid off a lot of their workforce. Now they have to re-start their operations.
Some questions that are plaguing their mind are:
- How much should I invest to re-commence 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 re-negotiate my lease?
- I need to reduce my debt burden but how do I renegotiate terms with my debtors?
- How do I re-start 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 fully leverage the relief and incentives offered by the government. 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. I wish you all the best.