The COVID-19 pandemic redefined what is needed for business resiliency plans. As more economies open up, businesses are starting to get back up from the pandemic. Here are some tips on how businesses can navigate the demands of the pandemic and how they can increase their business resiliency.
Prioritizing the Workforce’s Safety
Your employees are your most important resource. As a business executive, it’s crucial to make sure your workforce is safe and secure at all costs. Addressing their concerns, especially in times of crisis, gives them assurance and confidence that the company is under control.
As the COVID-19 disrupted the business landscape, companies initiated flexible work-from-home arrangements that allow employees to work remotely and safely. This setup calls for a reallocation of sources to employees and the establishment of policies promoting a safer working environment. Doing so keeps your people engaged with the company while earning their trust.
Leveraging Government Assistance
In the US, the Congress proposed small business relief in response to COVID-19. The Coronavirus Aid, Relief and Economic Security (CARES) Act aims to provide robust assistance to individuals and businesses which includes tax policies and finance regulations. CARES Act eyes to provide small business relief inclusive of $500 billion for Small Business Administration (SBA) loan guarantees and subsidies and additional funding for SBA resources.
The Senate made updates on the bill including:
- Modification of recovery rebates by eliminating the $2,500 minimum qualifying income requirement and the phase-in rules.
- Waiving required minimum distribution rules for certain retirement plans in calendar year 2020.
- Quarterly estimated payments are no longer delayed in this version of the bill.
- The new version modifies loss limitations for non-corporate taxpayers, including rules governing excess farm losses. Limitations on excess business losses are delayed until 2021. The proposed provision allowing corporations to delay making quarterly estimated payments has also been eliminated.
- Small Business Interruption Loans have been expanded from $300 billion to $350 billion, making loan eligibility limited to firms that have maintained their payroll. Forgiveness eligibility is extended to firms that rehire employees by April 1, 2020.
Monitoring government directives are essential for businesses, as these are opportunities they can grab to further support their current situation, provided they deliberate the policies that best serve the organization and its people.
Not in the United States? Here are some government supports for businesses around the world.
Revisiting Continuity Strategy
The current pandemic puts the companies’ resilience to test. As disruptions challenge their ability to provide excellent service to their clientele, operational and financial risks are also present.
Addressing the firm’s vulnerabilities is harder than you think. For one, cash flow should be monitored in a timely manner to know if there is any liquidity problem in maintaining the working capital.
Assessing your financial standing will help you get back up in the event that overhead costs and payables get on top of your receivables. Examine its impact wherever necessary and address them accordingly. Leaving them unresolved can cause financial pitfalls that have long-term implications.
As you evaluate your company’s situation after the COVID-19, assess whether your business continuity and recovery plans worked constructively. If not, then it’s high time to revisit your crisis strategy.
Practice Transparency All the Time
As COVID-19 caused a massive business interruption, communicating clearly with your stakeholders is a key step in giving them the confidence that everything is being taken care of.
Address your employees’ concerns in a transparent manner. Let them know what are your plans in the event that the crisis significantly affects the business operations.
Let your clients know how you plan to provide services continuously. Let them know what to expect for a particular span of time.
Inform all relevant people how you are going to handle the company in the midst of the crisis. Open communication saves everyone from leaving unanswered questions.
We know how business continuity and recovery can be difficult this time. That’s why it’s best to have a backup team to ensure your operations remain seamless and undisrupted.
In need of a helping hand during this time of crisis? We can help. D&V Philippines specializes in finance and accounting outsourcing to professional services firms all over the globe. Read our guide Outsourcing: How to Make it Work to know how we can help achieve your business goals through offshoring.
This article was first posted 25 March 2020 and edited 21 September 2020.