Making the most of a bad situation
Covid 19 is here and does not look like it will be going anytime too soon. I think most people will agree we cannot continue with being in lockdown for the next year or so, instead we must change the way we live.
Most businesses have seen a reduction in their turnover due to the Covid 19 but not all business have seen a reduction in profits. The question we should ask ourselves is how do we make the most of a bad situation?
Answer- use this time productively. Assess your business performance and position, identify where you can save money either by reducing your costs or by improving efficiency.
Here is our quick guide:
Analyse your expenses – as you go through each expense ask yourself ‘what would happen if I cancelled this?’ Would I lose customers? If I do lose customers, how much profit would I lose verses how much will I save? You should then be able to identify which expenses you can cut down on.
Systems review – we all have processes and systems we use to carry out day to day business activities. Now is a good time to review those processes and make yourself more efficient. If you have had a reoccurring customer compliant or always have a certain issue that you need to deal with then maybe now is a good time to make some changes. Make the most of a quieter period and make changes, some will work, and some may not work in which case you can always change back. You will also notice customers and suppliers are being more lenient during these times. Be realistic in your approach, make small consistent changes rather than one big change. You will find this easier to manage.
Culture and Habits – people are creatures of habit and do not normally like change usually because it is easier to continue doing what you have always been doing. Use the quiet time to encourage staff to make the change. Give staff the extra time and support required to implement changes.
We appreciate all businesses are different but hopefully the above is useful to most businesses. If you would like to know how Simon and Co Accountancy can help you then please feel free to get in touch.