It will take many years before we fully understand the economic effect of COVID-19, but what is painfully obvious today is that businesses across nations face a difficult struggle of post pandemic reopening as countries begin to enter a new state of normality – or set a new standard. While both the short-term time frame and forecasts vary widely from company to company, each company must establish a post-pandemic strategy today so that it is ready to prepare the ground for the return to normal. Here are some essential steps that can help you find the best approach to restore the financial health of your businesses
Assess Financial Damage and Determine Your Obligations
Start by updating your annual accounts and compare them with the previous calendar year. You should take all these factors into account in your reconstruction program. An assessment of how your company as a whole was affected by the pandemic could be valuable. Looking at the competition and the market as a whole, you may be surprised to find new potential. Find out what local and national regulations require and think about the measures you may want to consider – and the financial investments you want to make. Although policies vary widely from one company to another, operational and physical changes may be needed to help ensure workers’ and customers’ health, safety, and protection.
Rework Your Budget
You may want to spend money before you can make money, especially considering government guidelines for reopening. Suffice it to say that there are probably many things you need – and want to do – to accelerate the recovery of COVID-19. But you probably can’t do it all at once. Set spending and employment priorities and then decide on a timetable for action. Be reasonable and realistic.
Your immediate needs may be funding—secure funds before you start, for example, (re)hiring workers and replenishing stocks. When the financial situation of your business stabilizes, you should also monitor and evaluate its progress. What’s working? What “s not? Consider setting incremental goals (perhaps between 6, 12, and 18 months).
Consider How Much You’ll Need to Recover
Consider whether and how much money you want to recover. If you did not enter the pandemic with a large amount of money, many mini-organizations will find that they would like to have liquid funds to help them out of the pandemic. You should also contact your financial institution for more personalized guidance. Affinity’s team of business bankers, for example, will take the time to understand how COVID-19 is impacting your business specifically so they can recommend the right combination of products and services to help you recover, rebuild and ultimately achieve your business goals.
It would be smart to create a disaster recovery program for another disaster, OR you may decide to make debt repayment your goal. The longer you prepare for what might happen, the better your chances of not only surviving but also thriving in difficult times.