By Lisa Purichia
Partner, Director of Accounting & Retirement Plan Services
[email protected]
As you cope with the continuing impact of COVID-19, you’re probably struggling with day-to-day operations rather than planning for the long-term recovery of your business. But it’s vital to move toward a brighter future and proactively assert your plans for recovery.
You must understand that a lot has changed in a relatively short period of time. What did you learn about yourself and your team? What new processes and procedures make sense to implement after this mandated crisis is over? What innovations have you utilized during the crisis that will make you more cost-efficient going forward? Do not plan to automatically revert to your old ways without first contemplating if there is a better way. Again, what did you learn from this crisis? As a notable politician once quoted, “Never let a crisis go to waste!” The same — but with a whole different meaning — goes for your business. Take something positive from this experience; it will make your team stronger and more confident of future success.
What will your recovery look like? Will it be V-shaped, crashing to a sharp decline but quickly rising to a peak? Or will it be a U, gradually declining before moderately picking up momentum? Or will your business flatline and have to reinvent itself? Will you have to introduce new products and services? Innovation and perseverance will be the key to your future success.
Now is the time to develop, monitor and stress-test your recovery plan. In what areas can you cut costs? How can you expand your line of services to meet your customers’ current and post-COVID-19-related needs? During this time, also make sure to take advantage of the Small Business Administration loan programs, and consult your accountant, bankers, etc. about the best practices for moving forward and maintaining financial stability.
Always think about the long-term, especially when it comes to the relationships you’ve built. Many of your customers may not be able to pay you in full right now. Set up payment plans with those customers; they will reward your loyalty in the long term. The same goes for your vendors. Work with them on a proactive basis, and I am sure they will appreciate the respect you demonstrate for a long-term relationship. You’ll need these stakeholders’ support in the long run, so being more flexible now will strengthen your credibility with them and ensure steady business in the future.
Focus on the road ahead. You’ll hit some speedbumps, but if you keep a forward momentum, you will eventually find yourself back to business as usual. I like what one newscaster signs off nightly during this period: “We are one day closer to this being over!”
If we can assist you further with achieving success in your business, please contact Lisa Purichia at (317) 608-6693 or email [email protected].