Getting your business back up and running after coronavirus things to think about
As the exit plan from Coronavirus is revealed, and companies look at what their “new” trading needs are, getting up and running will pose a range of challenges for many business owners. However, the company that you ran before Coronavirus may not be the one that you ultimately offer a trading revival to.
Depending on your business, the steps needed will differ significantly. Some are going to come under ‘housekeeping.’ Businesses in this group would likely need to evaluate their stock rates and willingness to distribute their product across their former networks. Calculations of how quickly production may revert to pre-existing or pre-anticipated rates may be needed, along with order prioritization. Machinery and premises inspections, health inspection, reallocation of job duties and the recall of equipment given to those working at home are all things to be considered.
Contractually, it may be necessary to ascertain the responsibilities to suppliers, to decide if they can use local outbreaks as a justification for avoiding contractual obligations.
Cash flow management is going to be critical. Decisions on which investors you must pay first can be crucial. Credit on business loans received during the Coronavirus pandemic would need to be incorporated into financial plans, and late payment by customers is to be expected.
Considering Trade Credit insurance could be advantageous, as it would enable you to be paid, regardless of customer practices.
Lessons learned from the pandemic should be reflected in your future business. Experts say that it might not be prudent to rely on long-term global supply chains if supplies closer to home can be supplied. Shortening supply chains can provide more flexibility if the same goods, made to the same quality, can be manufactured more locally. Micro supply chains can be more agile and flexible with contracts, scaling up or down, as required.
Cyber protection initiatives and an acceptable level of cyber insurance may be a must if your company is centred on online retail or has embraced cloud-based technology and video conferencing to promote remote work.
Businesses are likely to have experienced varying degrees of change, however, where adjustments have taken place, it is crucial to ensure that the correct insurance policy is in place, as well as to decide whether additional policies are needed. In addition, risk assessments should be reviewed before business doors re-open. It is vital to ensure that no covers ran out during the lockdown or were cancelled as a cost-saving measure which are now needed again.
What has shone through this pandemic has been a spirit of cooperation, and this needs to form the foundation for ties with suppliers in the future. The same degree of collaboration should be practised between you and your insurance broker to make sure you have the right cover.
We are here to assist your business as you emerge from lockdown, this may this be with changing polices or revaluation of your risk. We are here to help, call us today.