As the situation with COVID-19 evolves and restrictions increase, seeking out the assistance of experienced financial crisis managers is essential, Todd Kelly of BDO (Nth Qld) told Tropic Now.
“It is concerning to look into the future - even just a little bit down the road - and see a situation where local business communities are potentially decimated by the impact of COVID-19,” Mr Kelly said.
“The current economic turmoil got us at BDO thinking what is going to solve the problem for local business communities now? The common theme was crisis management advice at the right time.”
Many businesses will struggle to survive the coming months, but there will be those that have a fighting chance. Businesses need to avail themselves of every opportunity to come out the other side.
Whilst the potential impact of the current situation may be unprecedented, significant economic downturns have arisen before and we are now armed with more and better tools to be able to get through to the other side.
The benefits of the current stimulus packages are unknown but, in reality, local businesses may be in the same situation in 6 months as now but with additional emotional burden due to prolonged uncertainty and stress.
To overcome these uncertain times, businesses should look to team up with financial advisers capable of providing crisis management assistance, with such experts being able to assist the business in formulating and executing a survival plan.
Taking a medical analogy, the crisis management team at BDO can offer local businesses support and advice in formulating a survival plan incorporating the following:
1. Diagnosis of the underlying cause, not just the symptoms. For some businesses, COVID-19 is the sole catalyst of financial distress whilst for others they may have had underlying issues for some time prior. Each “patient” may need a distinctively different approach.
2. Develop of a treatment plan. Any treatment must bear in mind that the current stimulus packages are geared at attempting to buy another 6 months for business. However, the loans need to be repaid, the deferred bills need to be paid, and the staff will be needed to be productive again. Whilst right now is a critical period, any survival plan should not simply focus on a short-term “Band-Aid” approach and will need to accommodate the peak financial strain that the business can endure.
3. Actioning the treatment plan. A structured, rational, and practical approach is key. If the plan is unable to be actioned, it is not the appropriate plan for the business. Your crisis management team can assist in conducting the conversations a business will likely need to have with other parties.
4. Monitoring of the results. Holding yourself to account and monitoring the success (or otherwise) of the plan is key. This should be followed by a regular diagnosis of success or failure, and the cycle repeats.
With an experienced crisis management team, BDO is offering businesses a free, no obligation initial discussion with businesses seeking to explore the wide range of crisis management options.
Find out more by calling BDO (NTH QLD) on (07) 4046 0000 or click here for more information on the BDO website.