There are steps you can take now, to minimise the impact of a recession and build a stronger business.
As we enter the recovery phase on the way to establishing the new normal, with lessons learnt from lockdown, we’ve discovered risks in our business that we may not have appreciated before, as well as opportunities that are there for the taking.
During lockdown, we focused on crisis management, activating Government support packages, and doing our best to build cash war chests. Whatever you are doing now, there are steps you can take to minimise the impact of a recession or protect your business from it.
Now is the ideal time to document a clear Business Recovery Plan by:
- Defining what you, as business owners, want from the business; this includes cash drawings, your role, hours of work and holidays.
- Establishing your budget and break-even analysis to ensure you’re generating enough cash to cover all expenses including tax, personal expenses, loans, and asset purchases.
- Determining your critical KPIs; the most important things you need to measure to track your progress towards achieving your targets.
- Identifying your opportunities and vulnerabilities; the factors that will most impact your business recovery.
- Determining how to manage your most critical challenges.
- Undertaking a risk analysis of each of your departments/business offerings, e.g. product/service development, marketing, sales, human resources, finances, technology, etc.
- Identifying necessary finance requirements and what’s needed to apply.
- Establishing your 12-month and 90-day goals to ensure you’re clear on your priorities.
- Clarifying your actions to achieve those goals.
If you haven’t created your Business Recovery Plan, we can help. You’ve got the smarts on your business, what’s working and what needs to change. Our expertise lies in stress testing the numbers and pulling everything into one concise plan of attack.
Alongside this business recovery plan, there are other ways you can recession-proof your business. Get in touch, we can help you stay on the right road to your success.