1. Plan: Plan for an immediate and long-term post-stimulus environment and have a contingency plan should the economy be hit by a second coronavirus outbreak. Planning can include evaluation of your supply chains and ensuring that future access to materials, component and finished goods will not be impacted by another catastrophe.

2. Calculate your projected cash flow taking into account whether you will be able to meet both operating costs and deferred payments such as rent, mortgage and tax. This will require calculating whether your revenue streams will recover and whether you can benefit from leveraging opportunities for new streams.

3. Assess your future needs. If your business has experienced change, review your staffing needs.

4. Reduce costs: Where possible, cut costs to minimise further impact on your cash flow.

5. Communicate: With your staff, customers, suppliers and creditors. Keep them abreast of the contingencies you will implement to help your business survive and if needed, negotiate new feasible contracts and terms and conditions.

6. Renegotiate rent/lease terms: If you predict you will struggle to pay your rent, speak with your landlord now and negotiate existing arrangements.

7. Funding: Engage with your bank/lender to discuss your funding needs or a repayment/interest rate relief or seek alternative finance.

8. Give yourself more time to recover: The safe harbour and voluntary administration regimes are designed to give companies, and their directors, leniency from creditors and time to ‘right the ship’.

9. Reinvent your business: Prepare for the ‘new dawn’ – whether it’s restructuring your business or restarting with a new model, strategy or market.

10. Seek professional help if you ae dealing with financial distress

 

Source: IPA