The world is going through the pandemic, it is more than a month that Lockdown was implemented either in partial or in full in UAE, which had given opportunity to brainstorm steps towards evolvement and plan a way forward.
Business outlook post COVID-19 is not the same again, at least not for near future which means we need to restart with cautiousness and adoptability for new business environment.
With the best of our understanding Horizon Biz Consultancy are suggesting to analyse the below points which will be helpful for business owners while reviving back after lockdown.
- Checking the business status of all key customers and suppliers.
- Collection from customers shall be overdue, do check how much working capital is occupied (outstanding from customers + advances paid + Unsold Stocks). Considering it, plan your actions.
- Try to encash blocked working capital by doing sales even at discounted prices for non-moving goods. Also save on inventory carrying cost of the same.
- The undelivered orders or proposed orders must be reconfirmed with customers with revised delivery schedule before adding any more stock. If deliveries are kept on hold then emphasize to collect advance.
- Accept new orders with ‘No Cancellation’ terms with either full or partial advance payments, improved pricing and flexible delivery taking into consideration uncontrollable possibilities.
- Draw a business development plan to pitch new customers and identify opportunities as their current supplier might be struggling to execute orders.
- Check the applicability of Force Majeure clause in rent agreement with landlords, customer/supplier agreements and try to resolve the concerns in a positive and amicable way.
- Making team efficient – Give warnings to non performing employees and employees with wrong attitude.
- Make sure all employees are having good health and infection free. Do check body temperature of all the team members at least twice a day.
- Even after business restart, initial few months will be slow for business. Efficiently use this time derive cost reduction, quality improvements and expanding product and service portfolio.
- Involve key team members in major efficiency improvement exercise, Yield improvement, loss reduction and least quality rejections.
- Hunt for more suppliers to have uninterrupted supplies at competitive pricing.
- Try to be conservation with procurements to avoid blocking the cash flows. Obtain centralised decision while making procurements considering views of each department.
All these steps will help for efficient revival of business during COVID-19 crisis.
Every step should be taken after getting stakeholders in confidence for uninterrupted business continuity.
For any query, feeling free to revert back.
Virtual CFO
Pranav Modi
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Read More:
https://www.horizonbizco.com/economic-effect-of-covid-19-in-uae/
https://www.horizonbizco.com/zero-rate-on-medical-supplies/
https://www.horizonbizco.com/businesses-to-start-in-dubai-with-low-investment/
https://www.horizonbizco.com/uae-aims-to-become-home-of-20-unicorns-by-2031/
https://www.horizonbizco.com/problems-faced-by-entrepreneurs-while-starting-a-startup-in-uae/
