How Your Business Can Recover from the COVID-19 Pandemic?
The economy will look vastly different after COVID-19; the grave economic consequences of interrupted supply chains and closed-down industries will have ripple effects for months to come. Payroll services, contracts, delivery to clients—everything will be affected in so many ways.
Furthermore, restrictions will loosen in stages, leaving companies to adjust to each other’s timelines. Here are a few things your accountant can help you with that will help ease the transition into the new normal:
Identify and prepare the core operating unit
Decide which of your employees are essential for the transition back into the old routines. Assemble the workers you need for essential operations and develop a checklist for your workflow and safety measures on-site.
The Pareto Principle indicates that approximately 20 percent of your workers accomplish 80 percent of the work. During a time when it’s crucial to reserve all the resources you can, make sure you choose well.
See if you have to change your business plan
Create a plan that caters to the market as it currently stands. Look for opportunities and new audiences that you have not previously considered. You can hire accountancy services for small businesses to help you formulate a new plan.
Businesses are restructuring to adapt to this reality, so make sure you bridge the gap and plan how operations can compensate. You might even need to construct new business goals for this time.
Be realistic about your financial standing
Ask difficult questions. Be aware that while there seems to be no definite end to the pandemic at the moment, you have to make safe projections into the future. You also have to assess people’s spending capacity and whether your business is competitively pricing your products.
Establish control measures to the challenges, set milestones, and learn how to evaluate the market in a timely and accurate manner.
Come up with a new marketing strategy
You must always remind customers of your brand and offerings, and marketing is about structuring experiences for that awareness. When you are on a budget, it’s important to analyze previous successes carefully and implement these in your current context.
Think of why people responded well to those campaigns, whether the tactics would work in this market, and what you can recreate given your current situation.
Create a new five-year plan
After you have done the work and asked the difficult questions, it is time to put your plans in action and evaluate these in terms of your projections.
A financial projection helps you represent outcomes quantitatively. Take a leaf out of accountants’ books—when you can put a price to plans and projects, it gives your business a better picture of needs to be done.
Create a detailed financial structure that allows you to account for targets, threats, and opportunities. Ask yourself how the cash flow projection will affect your plans, and if you can achieve your goals given the amount of money you expect to come in.
You must also consider what would happen if you fall short of your targets, and how you can help prevent this from happening. Healthy cash flow is all about speeding up collections and spreading out payments, so make sure you structure these into your new plans.
The pandemic will eventually pass, leaving businesses to plan how to grow in its wake. Having a sound accountancy practice and business strategies will allow you to thrive even amid a crisis.Get an experienced and trusted accountancy partner in 1 to 1 Accountants. We are accountants for small businesses in Hillingdon, leveraging technology to provide innovative accounting solutions for our clients. Schedule an online consultation with us to learn more.