We are now 2 years into a disruption which was going to last for 3 weeks initially!
Many businesses have been slow to respond to the challenges and have managed to ride out the initial wave. After such an extended economic downturn those who have not adapted or don’t do so soon will not make it for much longer.
What we have seen is that many businesses had managed to thrive in spite of bloated structures and uncontrolled expenses. What is needed now to protect against an uncertain future is the following:
- Conduct an intensive audit on your costs: Many companies have managed very well working from home for example. Office rental can account for between 8 and 10% of your expenses. Staff numbers, travel expenses, and other high level expenses need to be assessed.
- Reposition the business based on your audit: Look at where you can make short term gains from a cash flow scenario. Your cash flow projections are going to be the make or break of your business. Be conservative in your planning!
- Relook your relationships and contracts with your clients: Its more important than ever to have solid, ongoing relationships with your clients. Are there any interim measures you can take to make your products or services more financially attractive to your clients as a means of retention? Remember everyone is feeling the bite right now and if it makes sense it could be a great way to hold onto clients.
- Ensure that you have management and stakeholder buy in: You need to have the support of all stakeholders for your turnaround strategy in order for it to succeed. Make sure that everyone buys into it and does their part to ensure that it is successful.
These are just a few of the top-level areas that you should be concentrating on. There are many more.
To effectively plan the way forward you would ideally want the services of a Chief Restructuring Officer. This individual would typically come with a high price tag. At Your Boardroom we have the experience and knowledge to assist you in this difficult, but absolutely necessary exercise during these trying times.
Give us a try.