Finances are at the forefront of many businesses minds. Whilst we enter lockdown number 2, many businesses are fearing the worst and looking for support from their customers, collaegues, Governments and balance sheet to take them through untill Christmas.
It is important to be proactive in assessing the risk and vulnerability for ongoing operational and financial outlays. As the situation progresses, tracking the evolution of your finances will be critical to take decisive action when necessary.
Areas of focus:
- Repositioning - closely monitor and reduce costs where necessary. Reassess your products and portfoilo to maximise short term gains. Find potential new growth areas. Re forecast cash flow and model any liquidity scenarios. Manage important stakeholders.
- Strengthening - Assess and manage third party credit and supplier risk. Assess the ability of your own operations to meet demand. Use the data to define any opportunities. Initiate communications plan with key stakeholders.
- Turnaround - Optimise working capital. Secure financial support whether through government initiatives or alternative funding options. Designate a role to manage the revenue crisis.
Now is the time to reassess your businesses financial position. What positive change could be made today to ensure the next bang is one your were expecting?
At GRENKE we hope this has sparked your drive and will help support your business continuity in the month ahead.