Dr. Israel Figa on Business Disruption During COVID
As we all know, the current disruption is creating havoc for businesses around the world. That said, you can execute some critical steps to deal with the disruption you are facing in your business. What Dr. Israel Figa says is that this will help you to carry on with your operations without experiencing much loss.
Begin with Security and Health
There is no denying that the coronavirus is a human problem and a concrete human response is required. Hence, it is vital to take diligent care of the people on your business. The following are some vital queries you can ask.
Have you incorporated best practices to keep your workers safe?
If your business is still in operation in light of the Covid 10 pandemic, identify the safety and health practices you need to take to prevent any further transmission. Implement the required safe distance practices and include the usage of plexiglass barriers, gloves, and much more.
Can your folks work remotely?
According to Dr. Israel Figa, you should allow your employees as much as you possibly can to work from their homes to maintain social distance and minimize contact. Can you begin selling online? Can your business services be remotely delivered? Can you swiftly launch a business delivery service? Do the best you possibly can to implement effective solutions that can maintain a segment of your overall revenues while keeping your customers and employees safe.
Do you have an emergency plan for the quarantined workers?
What will you do if some of your workers are quarantined and are not able to come to work any longer? Is it possible for someone else to take their place? What you can do for example is to build different work teams to lower the risk of your complete crew being forced into isolation.
Is the paperwork being accelerated to lower the financial suffering of laid-off workers?
As per Doctor Israel, you should be sensitive to the financial problems your workers might be experiencing. Seek ways to reduce these problems as much as you can. There is no doubt that this will go a very long way toward creating employee loyalty.
3. Reach out to consumers
You then need to create a communication plan and reach out to consumers. As you begin to make changes in the manner you do your business in the short term (owing to the pandemic situation), there will be an impact on your cash flow. Furthermore, with alterations to your plan, you should take the time to comprehend the financial influence of these alterations and create a cash flow forecast that serves to reflect these changes.
Carry out confirmation that your orders are still on track
Reaching out to your consumers should be the first thing for you to do. For those of you continuing your business operations after the onset of the Covid 19 pandemic, call your primary customers and confirm that planned and existing orders are still well on track.
You do not need to necessarily renegotiate your payment terms. That said, you might have to defer your production or relax your repayment terms. That as a result will considerably slow down cash intake.
Do the best you can to comprehend how these changes will affect the value and timing of payment milestones.
Ask for the business receivables
Secondly, begin to call your consumers that owe you cash. You should comprehend whether they can pay and the exact payment timings.
When you are proactive, you can gain clarity regarding when the money might be coming in. Over the next 6-12 weeks, make sure to keep a careful eye on this on a regular basis. If a certain consumer promises to pay in a couple of weeks, it would be wise to follow up with a soft reminder a week in advance and encourage them to be transparent with you if they are facing difficulty in dealing with the repercussions of the pandemic.
Propose extra services
As you contact your consumers finally, be bold and ask them if they require anything else. It is likely that another supplier has been a disappointment to them and perhaps you can fill up that gap. See this as a golden opportunity to consider other options that can bring in extra cash. Keep in mind and Dr. Israel Figa emphasizes on this as well that in pressing times like these, the more money coming in for your business, the better!
The following are the extra things you ought to do beyond managing your consumers and suppliers.
Modify safety and health practices
According to experts around the world and Dr. Israel Figa, you will have to change your safety and health practices in response to the coronavirus. For instance, industry leaders are telling consumers how they are handling and packing products in light of the coronavirus situation. Bear in mind that you bear the same kind of responsibility. This will have a cost-related impact. Carry out estimation of the impact and include it in your plan.
Align your workforce and employees to demand projection
As the demand goes down, aligning your workplace personnel to business production will be your next step. It is likely that some of you might have tackled this already and the others will have to deal with it soon in the foreseeable future.
Prepare for Business Recovery
There will always be light at the end of the proverbial tunnel and at some point in time you will have to prepare for your business recovery. During this recovery stage, you have to:
At recovery you will need to stay ahead of the game:
- Shore up your business orders
- Buy materials
- Recall your workers
- Receive new shipments
- Begin to operationalize
To conclude, if you follow these steps in order and promptly, you can very well save your business from bearing the brunt of the Covid pandemic. Just be sure to plan everything in advance and leave nothing to chance!