Economy enters unknown territory
A few weeks into Alert Level 1, we are now entering unknown territory due to the impact of COVID-19 on New Zealand and global economies. The upheaval to date has been severe, which in time will lead to significant changes in demand for goods and services across a number of sectors.
For businesses, the impact of COVID-19 brings many challenges as they manage people’s welfare but also the many financial implications the current economic climate will bring.
Having a plan to deal with the fallout from the pandemic is going to be critical to business survival. If you haven’t already done so, you need to plan ahead.
This should be a high level view of what you need to be aware of and plan for, not just for your business, but yourself, your family, your team, and how you can support and retain customers.
Your plan doesn’t need to be perfect, but it does need to be done.
During lockdown, many businesses put a short-term plan in place but there is also a need to look at the longer term picture. We need to ask ourselves;
- What are your goals?
- Who is responsible for achieving them?
- When should the actions be done by?
- What will each action deliver?
In developing your plan, the key elements to consider are:
- Staffing levels
- Stock Management.
What are the critical areas to manage?
- Monitoring of cash
- Cashflow forecast
- Long- term business plan
- Proactive and decisive decision making
- Regular reporting
- Working with banks and creditors.
During this difficult time, if we can be of any assistance, or be that independent voice that you can bounce ideas off, we would be happy to help.