Friday 5th Jun 2020
As we move down our road of recovery, you might feel you are able to look forward once more. Spending some time reflecting on how you and your business has performed across this crisis could be invaluable. There may be things that have worked extremely well and equally, what weaknesses have manifested themselves which are worthy of some “thinking time” to see what changes can be made to your business model. Here are some of my top tips on the areas you should focus on:
Review your supply chain
Looking across the pond, Mr Trump is encouraging American businesses to review their supply chain to reduce their reliance on overseas suppliers and specifically China. How did your own supply chain perform across this period, has it highlighted any key supply chains which did not work as effectively as you required? Now may be the time to diversify your suppliers to reduce or eliminate this risk. Conversely if your supply chain performed as normal, do you now have surplus stock which you have been unable to sell on, you may want to consider how best to liquidate this stock to bring some valuable cash back into your business.
Consider your customers
Assess how your sales performed across this period, did your customers remain open? Were your products or services still in demand across this period? Now may be the time to look at customer or product diversification to mitigate some of these risks and to perhaps smooth out any peaks and troughs on your businesses cashflow. Are there any additional products or services you can provide which are suited to your areas of specialism?
Don’t forget Health and Safety
Work health and safety will come under increased focus as we all transition back to our formal workplace, so it is critical to ensure you provide your staff with the resources and tools to safely carry out their duties. We are already seeing lawsuits in the US from employees or their relatives against companies who in their view have not provided for their staff so this needs to be taken very seriously – a review of your company’s insurance would be a worthwhile exercise too.
Finally, it is inevitable that many businesses will simply not be able to ride out the myriad of issues linked to CV-19 and we will see many more business fail. If your business is one of these casualties, do not despair as this may be an opportunity to consider some of the above and allow your business to rise from the ashes much stronger than it was before, just remember to wear your swimwear this time!
Head to our Invoice Finance page to find out how we can help your business and for further top tips and advice!