31 March 2020
This is an unprecedented time for all of us and business owners are facing extraordinary demands on their business and beyond. The current rate of change means business owners’ planning horizon is down to weeks or days and for many it’s into survival mode.
With businesses facing such significant disruption, swift and sharp decisions will need to be made to survive in a downturn. What is important in these times is to understand how and where you can respond. In the short-term, you will need to make tough decisions on how to unwind. In the longer-term, things will get better, and you will need to be prepared to windup.
A Business Response Plan is the tool you need to help your business know how or where to pivot. It will help you to identify the key risk areas in your business and work through the various financial scenarios and key strategic options you need to make to survive.
A Business Response Plan helps you make the tough decisions that need to be made and prepare your business to quickly respond when the recovery kicks in.
The Business Response Process :
1. Stress test your financial position
- Define scenarios (quick recovery, global slowdown, and a pandemic driven recession) that are tailored to the business.
- Develop forecasts for the next three and twelve months.
- Identify trigger variables that could drive significant liquidity events.
- Identify trigger-based moves to stabilise.
- Identify working capital levers.
2. Business continuity test
- Risk assessment and business impact.
- Workforce planning.
- Supply chain stabilisation.
- Customer engagement.
- Insurance coverage.
- Internal communication plan.
- Response teams.
3. Develop continuity plan
- Develop one week, one month and one-year plans.
- Share plan with key influencers in the organisation to ensure buy in and success of execution.
- Share plan with shareholders and funders.
4. Execute with urgency
- Execute with speed and urgency.
- Reflect, refine, and respond to changes.
- We are here to provide ongoing support as you navigate through this uncertain time.
Each business will have its own challenges and needs, and our team can tailor our service to work with you through each step. Get in touch with the Performance Consulting team today.
Findex has developed a Government Stimulus Health Check and free Business Wellbeing Toolkit to help businesses manage potential risks and take full advantage of eligible stimulus assistance. Book your Health Check here.
Findex NZ Limited trading as Findex
While all reasonable care is taken in the preparation of the material in this document, to the extent allowed by legislation Findex NZ Limited accept no liability whatsoever for reliance on it. All opinions, conclusions, forecasts or recommendations are reasonably held at the time of compilation but are subject to change without notice. Findex NZ Limited assumes no obligation to update this material after it has been issued.
The information contained is of a general nature only and does not take into account your objectives, financial situation or needs. You should consider whether the information is suitable for you and your personal circumstances. You should seek personal financial advice before acting on any material.
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