The COVID-19 pandemic is having widespread effects on businesses across the country. By mid-March, 73% of companies were already feeling the negative effect of the crisis, according to a BDC survey of over 600 Canadian entrepreneurs.
In times of crisis, cash becomes even more important than it usually is for a company.
Creating a detailed continuity plan and cash flow forecast will help you sustain ongoing operations, albeit at a lower capacity, and facilitate recovery once the crisis is over.
We have all been forced to adapt to what is going on, and we must work through this. We hope the following steps will give you the clarity you need to anticipate and respond on a day-to-day basis, allow you to control your cash flow, and establish operational resilience.
1. Start with health and security
Covid-19 is a human problem—a human response is in order—so let’s take care of our people first. Here are some important questions you can ask.
Have you implemented best practices to keep employees safe?
For those of you who are still in operation, identify the health and safety practices you must take to prevent further transmission. Institute the necessary safe distance practices and incorporate the use of gloves, plexiglass barriers, and so on.
Can your people work remotely?
As much as possible, allow your employees to work from home to minimize contact and maintain social distance. Can you start selling online? Can your services be delivered remotely? Are you able to quickly launch a delivery service? Do your best to implement solutions that can maintain a portion of your revenues while keeping employees and customers safe.
Do you have a contingency plan for quarantined employees?
What will you do if one or more of your employees is quarantined and can no longer come into work? Can someone else take their place? It can be an idea, for instance, to create different work teams to minimize the risk of your entire crew being forced to isolate.
Is paperwork being expedited to reduce financial distress of laid-off employees?
Be sensitive to the financial distress personnel may be experiencing especially look for options to alleviate this the best way you can. This will go a long way toward building employee loyalty.
Want to keep reading? Visit the BDC's website at https://www.bdc.ca/en/blog/pages/covid-19-steps-to-sustain-your-business-through-disruption.aspx