Hello friends
Another financial year is ending
today and we are entering into a new financial year, amidst the uncertainties and
challenges arising out of Covid-19, both in your business and personal sphere.
The COVID-19 outbreak poses unprecedented challenges to businesses,
governments, and societies around the world.
At this juncture, can we do something
other than wait and watch, at the same time staying safe and staying healthy?
We can have an introspection to
the business so far this year. We can also assess the possible fallout and
challenges we may face next year due to the Pandemic. Of course, the situation
is unpredictable, still we can visualise all possible scenarios and prepare ourselves
for the worst. We can have a Plan A, Plan B and Plan C.
Some of the challenges we are
going to face will be:
1.
Decreased business activity and resulting
liquidity crunch in the market
2.
Disruptions in Supply Chain and Logistics
3.
Difficulties in Marketing efforts due to travel
ban and the like
Facing the Liquidity Crunch
One of the major issues we may be
going to face will be liquidity in the market. We will have to plan our cash
budget very meticulously. And monitor it on a continuous basis. Wherever expenditure
can be reduced, we should look into it at the same time it should not disturb
the smooth functioning of the business. We have to identify the blocked cash
and implement steps to realise it – be it inventory or receivables or other
assets.
You have to appreciate that there
will be a short term drop in the total business activity, leading to lower spending
and lower consumption. So, our sales forecast should take into consideration
this aspect also. We can not apply static solutions to dynamic situations. So,
we should keep our eyes and ears open to grasp each and every signal the
economy is generating and should be ready for every eventuality.
Make sure that you avail all the
schemes and facilities offered specially to meet the Covid – 19 challenges, by
the Government and banks.
Care for your Employees
In the human resources front, the
thrust should be to increase the productivity per person. And if your work culture
is great, the biggest support you are going to get will be from your employees.
How you treat your employees now will have a massive effect on their
well being, and consequently on their loyalty and productivity.
One important fact you have to
appreciate is that we all are facing a Pandemic – you, your business and your
employees also. It is not a time to desert your employees who are, if fact, the
eyes, ears, hands and legs of your business. Be humane, Show compassion and benevolence.
The universe moves on inter dependency only.
Handhold and survive
This unprecedented business
crisis may drive the world into a recession. This will not be a short-term phenomenon;
it is going to last a little longer. So, survival of the fittest will be the
mantra for the future. But one person alone cannot stay fit where all his surroundings
are collapsing. So, I would say survival by co-operation and collaboration should
be the strategy to tackle this uncertainty.
As Ms. Suneeta Reddy MD, Apollo
Hospitals Enterprise points out, This Pandemic Reminds Us that We are All
Equal and Connected. It reminds us that we are equal regardless of our religion, culture,
occupation or financial situation. It reminds us that we are all connected and
the false borders we have put up give us no protection.
Every Challenge is an Opportunity
Yes, Covid – 19 is big challenge
and we should appreciate that the challenges only make us stronger. As the
saying goes, “rough seas make great sailors”, each challenge should drive us to
identify a different opportunity. The Businessman should be able to convert a
challenge into an opportunity and there lies the sustainability and growth.
Be flexible to take fast decisions.
The way you react to the challenges define you and your business. Please
remember, a whole world is looking at you – how you are going to face this or how
you are going to react. The economy, your employees, your suppliers and
customers, all other stakeholder and your family – your decisions are going to
affect all of them. So be sensible, be proactive, be alert, be receptive to
different viewpoints and thus make your mark.
This is a remainder
This kind of Black Swan events
can occur more frequently in future and we should have a proper Business Continuity
Plan and a Disaster Recovery Plane in place. You should be stable and level-headed,
where the entire world may be in shambles. You should be thoughtful and
decisive. Wait and Watch is not the best idea for the season. Take informed
decision and communicate to lower ranks. Leaders need to be loud during the
tough times and that is what everyone is expecting from a Leader.
End Note
Last but not the least, take care
of your health and your family. Health and fitness give you physical strength where
family gives you emotional strength. Afterall, who do you work for?
Random thoughts by CA.
Jameskutty Antony
(please give me your feedback
on this)
