With lockdown restrictions easing, all businesses should now be forward planning their exits from such lockdown restrictions (roadmap) and strategising how they will navigate through the ‘new normal’.
In such planning, businesses should adopt their own post-lockdown roadmap which should cover the following matters:
- Prepare sufficient financial data: This includes creating an integrated model covering detailed cashflow forecasts, profit and loss account and balance sheet over a minimum of 2 years, preferably 3 years. The cashflow forecast should make specific assumptions about how settlement of deferred liabilities (including deferred rent) will be achieved.
- Management level strategy: Following on from 1 above, management should have in their possession additional data make the appropriate strategic business decisions which should include possible sources of finance that might be required.
- Relationships review: Undertake a full and comprehensive review of all customer and supplier relationships to ensure these are still fit for purpose and appropriate in the circumstances.
- HR resources breakdown: Undertake a full analysis of HR assets and again make sure these are appropriate in the circumstances and adequately deal with the anticipated levels of activity, including, where applicable, bringing employees out of furlough.
- Review revenue streams: Revisit customer acquisition strategies and other sales and marketing strategies to include, where applicable, social media and other online initiatives.
- Don’t forget your existing clients: Rekindle face to face relationships with existing, and new clients and prospects, fully utilising this time to create personal connections and new business opportunities. This is a great time to cement those relationships of trust, making clients and prospects feel valued and growing your network, both in person and via social media and digital means.
- Carry out competitor research: Consider the approach and performance of competitors to see if anything can be learned from including both positive and negative aspects from competitors.
- Get the team involved: Ensure that the revised strategies to be adopted by the business have full “buy-in” from the whole management team and employees.
What works for your business?
It is also worth noting one year into the pandemic world that businesses that have not permanently stopped trading intend to use increased home working (“WFH”) in 24% of cases, whilst a further 28% are still unsure as to the future policy in connection with WFH .
The economic outlook for 2021 and beyond shows that the economy appears to have adapted well to the lockdowns with a much smaller decline in economic activity recorded in early 2021, than in the first national lockdown of Spring 2020. Economists differ in how quickly they expect the economy to recover once restrictions are completely eased. Some expect consumer spending to underpin strong growth, whilst others think an expected rise in unemployment this year will lead to consumers being more cautious.
How Gerald Edelman can help
Gerald Edelman is a leading mid-tier accountancy and advisory firm. We provide our clients with a full range of business services, including audit, accounting and other compliance services, as well as other advisory services that enable you to think beyond compliance and excel beyond your limits.
From deal advisory and transaction services, asset and debt finance, HR consultancy, international tax and tax advisory, to VAT advisory, business advisory, forensic and expert witness, as well as wealth planning and probate and estate administration, we are more than just accountants, offering you strategic advice for your next steps.
Should you require further assistance and advice in navigating your business out of the pandemic lockdown into strategic recovery and growth, contact Richard Kleiner or a member of our team.