As they progress along the road to recovery, owner managers have the perfect opportunity to future-proof operating models and strengthen their business’ performance. Conducting a viability test, rather than reverting to how things were prior to the pandemic, can contribute to building a stronger, more resilient business which is prepared to meet future challenges.
Through assessing businesses in four key areas – cashflow, innovation, communication and protection – owner managers can prepare to scale up rapidly whilst ensuring they have the appropriate and necessary resources in place without reliance on Government-backed financial support as it draws to an end.
It is crucial that owner managers have a clear concept of their company’s current and predicted cash position in order to be confident that they’re able to cover their liabilities and invest to keep up with growing levels of demand. To begin with, businesses should consider whether they will have enough cash in the bank to pay necessary bills. If further investment is required to assist growth or capital expenditure, early identification will allow engagement with potential funding partners to find the most suitable fit for the business.
Where positive changes have been introduced during the pandemic, owner managers should take opportunities to build on these through further innovations rather than necessarily going back to the previous habits. For example, is the company fully taking advantage of e-commerce opportunities? How else could it adapt to exploit new or expanding areas of demand?
Additionally, effective communication is vital. Owner managers need to consider whether they’re doing enough to build valuable relationships with customers as well as suppliers and learn about their commercial and operational challenges. If the business is confronted with its own cashflow complications, have lenders or creditors been approached to renegotiate payment terms?
Finally, careful consideration from decision makers is essential when thinking about the steps taken to protect the business. This should consist of checking the right insurance cover is in place to take account of any developments in the business and ensuring it has a robust credit management strategy.
How can we help?
A trusted advisor partnership will allow owner managers to assess their business objectively, illustrating areas for improvement as well as discovering a way to address them. If necessary, owner managers can work alongside their advisor to reshape the business with the aim of securing a stable future. With thoughtful consideration of their commercial viability and intentional action to rebuild a stronger business, owner managers will be ready to scale up operations and ensure their company is fit for the future.