The recent COVID pandemic situation has hit the small and medium scale businesses badly and many are facing difficulties to sustain in the market. The percentage of taking debt by the companies has increased significantly during the third quarter of 2019 to 2021. The companies are looking for proper financial advisory restructuring services and trying to come out of it.
Let us discuss in detail the strategy of corporate recovery and restructuring process.
Advisors should start acting in advance:
The CEOs of the companies plays a very important role here. They need to diagnose the issues well in advance and plan accordingly. Engage advisors like lawyers, debt advisors, business-consultants when required. Make sure they are well experienced in restructuring process and can give you proper advice. So, plan for a proper financial advisory restructuring services.
Set ambitious and realistic targets:
Think out of the box, set an ambitious and realistic target and prepare your team accordingly. You should be very clear about the future vision of your company. Make a clear and detailed plan and start working towards it with your team.
Prioritise the activities that needs more attention and immediate action:
There may be few areas where you need to focus less and there will be some areas where you need to fucus with priority. Digitization is very important in today’s world and think and invest in areas like these which will help you in the long run.
Changes for the management:
The management plays an important role in corporate recovery and restructuring as the employees might feel unrest or worried with the changing situation. It is the responsibility of the management to give the assurance and plan reformational programs for the employees to keep the situation under control.
The companies are planning to sustain in various ways. Some are opting for pivoting the business model that gives them short-term survival with long term resilience and growth. Pivoting is the kind of move that creates enough value for the customer and companies to share. Pivoting can help both in online and offline businesses. The pivots should give a greater variety to your business which will be most suitable considering the situation of the present days. Let me give an example. If you are in restaurant business, try to add more services like home delivery, a fixed discounted rate for a number of set meals in a month, sharing special recipes through video etc and add new dimensions to your services.
The pivot should take care of the following three most important things:
- A pivot must prepare the firm for the situation created by pandemic like social distancing, enhanced use of technology etc.
- A pivot must take into consideration the full potential that company can offer and not undermining it.
- A pivot must show a sustainable path to profitability keeping in mind to enhance the brand value of the company in the minds of customers.
So, though it may look impossible at times to sustain at this pandemic situation, well planning and proper implementation can definitely take you out of this.