Covid-19 pandemic put forth an unprecedented situation shaking both personal and professional roots. People have lost their loved ones and jobs, companies have shut down, startups didn’t flourish and thus, collectively we all have felt its impact. While we all are waiting for it to vanish, the unfortunate part is it’s still out there! Businesses have restarted their operations in phased manner but returning to work was not same as returning to work they way we left it! From office to work from home, from in-person conversations to video calls, team collaborations over virtual connects, well, life has changed!
Most of the organizations are still dealing with financial crisis caused by Covid-19 and balancing decisions to navigate through new normal. It’s a dynamic and prolonged disruption which is making it difficult to forecast the pace of business. Hence, it has become imperative for businesses to return back to operations in this new normal and step forward with enhanced flexibility, so they are prepared to gain even if there is another lockdown!
- Employee Safety: Every organization needs to ensure that they provide job security to the employees. The attrition rate has been trending high in the industry because employees are feeling insecure about their jobs. The demand has reduced while the supply increased causing this imbalance. Your former employees possess the knowhow of running the business, hence make every effort to retain the top performing talent (even if this requires reviewing your existing policies) as you have other battles to win to recover from this crisis.
- Cash is King: The working capital is the elephant in the room since you need to cater to your creditors and disburse salaries in time. Conduct cash forecasting for short, medium and long-term which means close monitoring of the funds in hand, utilization of credit limits and reviewing flow of funds from debtors to creditors. You need to be ready with different financial scenarios including corporate recovery & restructuring for catering to economic conditions.
- Stimulation of Sales: Revenue should continue to be focus area, so you know when to go for turnaround and restructuring advisory services in Singapore. Your operating plans should estimate fluctuations in demand due to changing scenarios and how to deal with it. Hence, a systematic and tailored approach to work in all kinds of scenarios is necessary.
- Technology dependence: Since dependence on technology infrastructure has increased to support recovery & business continuity, it is significant that all security controls are reviewed timely. Any compliance issue can lead to unnecessary botheration and stress which can deviate attention from key matters.
- Liquidity management: Bank covenants should be reviewed often for catering to liquidity scenarios. This means you should relook at your discretionary expenses and eliminate any wasteful expenditure. Further, a deep dive of all cash sources is imperative to check if you can negotiate for some waivers with your creditors and offer some waiver to debtor for early reimbursement of receivables. You can even opt for discounting the debtors through financing agencies or corporate recovery & restructuring.