The changes to our country with the COVID-19 crisis is unlike anything we have encountered in quite some time. What seemed unthinkable just a short while ago has become the new normal in just a matter of weeks. In the business community, that has created a need to shift very fast, adjust to very a very different way of operating. We thought we would share a few tips on business crisis management and what we have seen clients do successfully
1) Forecast your cash and expenses as often as you can
Rather than focus on growth, many companies are looking at surviving the current crisis using business crisis management strategies. News changes daily, and the impact of the crisis hits in new ways. Given this rate of change, we have seen many clients updating their forecasts daily. It is important to have tools in place to gain visibility into your cash, churn and expenses.
2) Look at statistical information, not just accounting data
You probably have more data than you realize – information you are collecting on customers or products. This needs to be part of your forecasts. Employee utilization reports, inventory status, equipment leasing, sales forecasts – all of these will impact your short term cash flow. Make sure you are utilizing this valuable data in your budgeting and forecasting.
3) Remote work is the norm – just make sure it is secure
We all have heard stories about hacked video conferences, and certainly secure communication lines are critical. But what about VPN access to your financials? What happens if an employee’s home WiFi gets hacked? Do you have controls in place to secure your data? With effective business crisis management, many businesses are updating their protocols to ensure business is conducted in safe, secure manner.
4) Connect with your customers
Depending on the nature of what you do, you may have very limited operations or none at all. But your customers are still there, and they want to hear from you. We all will emerge from this, and our economy will continue. Your customers need to hear from you, now. They need to know what your plans are for operations during the crisis, and that you will be there when things return to normal. Yes – this is a time of struggle, and messaging needs to adjust. Still, communication is critical.
