COVID-19 affected small, medium and large businesses across the globe. Widespread lockdowns, economic uncertainty and fear caused consumers to stop spending and business doors to slam shut. It has been a challenging experience for many, but we must look forward and plan for the future.
This article offers a simple, 5-step financial recovery plan. For more personalised advice, contact our knowledgeable team at Bluepath.
- Assess the damage and your current financial position.
The first step to rebuilding is to accurately and comprehensively assess the pandemic’s impact on your business. As with every business action and decision, we encourage you to start with the numbers. Your financial statements offer insight into how deeply your business was affected. When assessing your current position, it is essential to consider the impact on inventory and staff.
Compare your position 12 months ago to now. List all aspects of your business and record the change.
- Reassess your business plan.
Did your business model change during COVID? Is your new approach sustainable? Now is a great time to assess your business plan. It is likely that at least one aspect of your business has changed. For example, did you previously rely on foot traffic to generate sales? Or maybe you’re a restaurant that only catered for seated diners?
The pandemic has forced businesses in every industry to adapt and pivot. Digital marketing and the use of online platforms has skyrocketed, enabling companies to continue operating stay afloat. Perhaps some of the practices you adopted during this time will remain a part of your business model?
- Redefine your budget.
Your pre-pandemic budget is likely to be outdated; it potentially doesn’t account for recovery or your business’s adjusted needs. Your new budget should consider what you need to repay, how much money is coming in, and how to make the most of your revenue.
- Develop a recovery timeline.
What are your short- and long-term recovery goals? Perhaps you want to restart marketing now but delay hiring staff for six months? Developing a recovery timeline is a great way to set achievable, realistic goals and hold yourself accountable to them.
Of course, nobody can predict the future; additional lockdowns, performance changes and other factors could interrupt your plan. To account for this, we can create contingency plans that guide us through unforeseen events. Read point 5 for more information.
- Plan for the next crisis.
A contingency plan can help prepare you for future crises. The COVID-19 pandemic was a once in a lifetime event; however, other disruptions could interrupt your business operations. Use what you have learned from this pandemic to reduce risk in the future. That could include saving more cash, trimming your debt or improving your operational efficiency.
Need help to navigate the financial and operational consequences of the COVID-19 pandemic?
At Bluepath, we offer various financial services including bookkeeping, HR, payroll, operations management and consulting. For comprehensive management and assistance to recover from the pandemic, contact us today.