The coronavirus pandemic is hitting businesses and the economy hard. Travel and tourism is almost non-existent, sports events are cancelled, some businesses are told to keep their doors closed, others can open under prescribed conditions… all of which can make it difficult to stay calm and be optimistic about the potential challenges we are likely to face over the weeks, months and years of recovery that we now have ahead of us.
Whether that’s getting ‘out there’ and profiting from an exciting new opportunity or getting your head down and wrapping the business in cotton wool for another couple of months. In uncertain times, it’s always best to be prepared!
In a recent survey conducted by, YRH Finance Team, only a third (37.7%) of business owners have taken proactive steps to re-forecast their business performance and adjust their business model to reflect the current climate.
By taking proactive steps now, business owners can put the future of their business, and those within it in a more secure position.
A Business Recovery Plan is just one way to assess the impact the pandemic has had on the business, restructure the budget, identify sales levels required to stabilise the business whilst focusing on risk mitigation and opportunity success.
Here are our 6 top tips when it comes to business recovery planning:
1) Start with the financials
The first step is to determine just how deeply your business has been affected. Update your financial records, such as P&L’s and cashflows, and compare them against prior years. When doing this make sure you are comparing like for like.
2) Dust off the business plan
Your business model may have worked perfectly fine before the pandemic but now we are starting to come out of the other side it is important to consider when some adjustments may be required – and where practices adopted during the pandemic can be continued.
3) Working capital to get your business working
It is likely that many businesses are going to need some working capital ready to support their business and its operations as government support reduces and businesses open up again. Each funding option will have its pros and cons so speaking to an expert is advisable before applying for financial support.
4) Revamp your budget
From hiring new employees and staff training to stock purchasing and replacing equipment. Some businesses may need to spend money before they can make money. It is essential to have a clear idea of where the budget can be streamlined and where additional spending is required. The goal is to eliminate waste and operate in a lean way to improve the ability to invest in growth when that opportunity comes.
5 ) Clear roadmap
There may be several fires that need putting out, a number of new initiatives to be introduced or numerous parts of the business that need support – don’t it all at once isn’t realistic. Having a cleat timeline that prioritises the essential tasks for recovery followed by the “nice to haves” along with clear lines of responsibilities and deadlines will help ensure a clear path to recovery…. oh and don’t forget to track & record progress!
6) Contingency Planning
Whilst Covid-19 may be a once in a lifetime experience, the reality is that another emergency could come along and disrupt your business. Taking the key learnings from the pandemic to prepare for a potential crisis will help to protect your business from a potential future disruption.
The pandemic may have taught you a thing or two about how important it is to be able to adapt and keep your business fluid so you can manage obstacles as they come your way. Business Recovery Planning will help you consider what you need to do to improve your businesses odds of pushing through these challenging times, adapting from learnings and aligning every person in the business on what’s required to recover and then grow.
For a complimentary Discovery Call to discuss the most appropriate level of support on a wider basis, a personalised quote and a guarantee of our best possible service, please complete the form below and one of our senior advisors will contact you.
Or if you prefer, 01296 681341 for our Wingrave Bucks Accountants office.