Business Continuity Plan due to COVID-19
As a business owner, there’s one key thing you need to totally focus on now – keeping your business alive during these difficult times. It’s not all doom and gloom either – withstanding the tough times sets a business up to be a fast turning cash flow business when everything bounces back in a positive way in the future.
Remember that while cash flow is under control then so is your business. Downturns can be scary in the moment, usually because there is no plan in place for your business and the world around you appears to be panicking.
If you take actionable appropriate steps to create a Continuity Plan, then in reality a downturn is just a stop gap to the next upturn, where your business will be cash flow fit and ready to take full advantage.
You will need to build a cash “war chest” which will let you keep trading through the coming difficult months.
There are 7 key areas you need to consider immediately:
- Cash– Preserve cash at all costs. You must immediately start building a cash “war chest” for your business to survive.
- Protection– Update and upgrade your Asset Protection IMMEDIATELY. It’s very important to review strategies to protect the equity in your family home and other assets in personal names. It’s also vital for you to have an up to date Enduring Power of Attorney (EPOA) and Will, and to know where the original signed copies of these are located.
- Banks and Funding– You should contact your bank immediately to arrange additional lines of credit if possible. Alternative funding sources should also be immediately considered. The time to act is NOW, not in 2 weeks’ time when the banks will be overwhelmed by other bank loan applications.
- Management Team– Work through the COVID-19 Continuity Plan with your Management Team, then quickly communicate appropriate decisions to your entire team.
- Employees– You need to openly discuss reduced working hours with your employees to save cash (if this does save cash) and working from home arrangements. Employees will be scared, so they need to be reassured by you and they need to be given an understanding of your plan to keep the business alive.
- Customers & Suppliers– Great communication is needed to so that customers have peace of mind that it’s “business as usual” where possible, and so that you can rely on your suppliers.
- Mental Health– This could be one of the most stressful times ever for you and your employees. We can provide links to assistance for you to help you and your team through this crisis.