Coronavirus has already had a damaging effect on businesses across the globe. As the crisis continues to develop, how firms act now is the difference between weathering the storm and sinking the ship.
A distinct trait of enduring companies is the way their leaders deal with emergencies in times like these. False optimism and actions that stem from panic are not your friends. Prudent decisions and contingency plans are.
The upturn will be a gradual (and likely, frustrating) process. Ultimately, no one knows how long the country will take to suppress the virus. However, we’re sure you’ll agree that flexible businesses are likely to fare best. In the words of Darwin, survivors “are not the strongest or the most intelligent, but the most adaptable to change.” Here are some measures that business owners can take to lessen the effects of the crisis:
More efficient tax models
During global uncertainties, more agile tax models are needed. Reducing taxable income, taking available refunds and minimising or deferring necessary tax payments will cut the amount of tax you’ll need to spend during a period where it might be hard for your business to cover these costs.
Crisis management and response
Your existing business continuity plans may not be adequate for an unparalleled crisis as unknown and fast-moving as this. As in all emergency situations, effective communication is vital. If you haven’t done so yet, develop incident management and scenario plans that are specific to this crisis and make sure to frequently update important stakeholders.
Even if you don’t think your firm is directly affected by coronavirus, the lockdown we are seeing is likely to cause people to modify their spending habits en-masse. The whole playing field could alter during the crisis and in its aftermath. The key is not to be caught flat-footed.
Reassess capital spending
Look at your spending plans and assess whether they are still sensible in this changing environment. It might be that there is no reason to change plans. The moving situation may even present opportunities for your plans to accelerate. What’s important is that any action you take follows proper deliberation. Knee-jerk reactions often damage long-term prospects.
Supply chain management
The knock-on effects of the Covid-19 pandemic are likely to cause supply chain disruption in some way. If you trade internationally, you could identify different supply chain scenarios as periods of mass-disruption affect different regions.
If you’d like to discuss your personal or business financial planning with us in more depth, do get in touch. You can call us on 01789 263888 or email firstname.lastname@example.org.