Social distancing rules enforced across the region has limited buyer’s options, giving birth to new spending habits and market opportunities.
#Helping them keep afloat upgrade#
There will come a point where businesses need to upgrade their infrastructure.
#Helping them keep afloat software#
This ensures that the resources of a business can be deployed toward tasks that can keep the business afloat.ĮRP Software Free Product Tour (opens in a new tab) Be Lean, Mean and Adaptable
While businesses can never truly eliminate risks, shifting resources will at least help weather the worst of it. The brewery launched new initiatives such as a drive thru bottle shop and the introduction of new mix packed offerings to drive ecommerce sales and meet demand for online ordering and delivery.īusinesses that adapt to these changes can cushion the blow to their financials. Founders Danielle Allen and Jayne Lewis had to redirect beer that would normally be sold in kegs to bottles and cans and quickly think of new ways to label their beers. In the case of Australia’s first female-owned brewery, Two Birds Brewing had to move away from keg production as pubs, bars and restaurants were forced to close. Businesses can consider tweaking their business model and shift resources to areas that can still bring positive cash flow. As these changes happen, businesses can plan their strategies to align with immediate customer needs. Stricter government regulations are changing the way businesses operate across the region.
We made decisions around what costs we wanted to cut, and because of that we were able to ramp down our costs quickly.” Shift Business Resources “In a situation like this you can’t hesitate. “We had to look at cash preservation,” Chris Tham, CFO of Bailey Nelson said. Optical retailer Bailey Nelson realised the importance of this when all of its 70 stores across Australia, New Zealand, Canada and the UK were forced to close. This may be an opportunity to find bargain prices from new suppliers who might offer more attractive terms to sign on new business.Ĭash is king, and now more than ever businesses need to have a clear understanding of their financial standing. When this happens, consider alternative suppliers. Start establishing regular communications with your suppliers to identify risks that may prevent them from fulfilling supply obligations. This will not only create inventory problems, but also negatively impact cash flow if your current inventory can’t meet customer demands. For example, supply chain disruptions caused by lockdowns may restrict labour and supply routes, limiting your supplier’s capacity. Stricter government regulations should also be kept in mind when managing cash flow. And if existing cash reserves are still not enough, take advantage of local government stimulus packages that provides cash relief to businesses and programmes that may defer payments on existing debts. Businesses can also review existing contracts with suppliers and seek out more flexible payment terms to maximise cash. This can help ensure that you have adequate cash to continue business operations and not waste cash on initiatives that may not happen. Start by updating your balance sheet to identify if cash-on-hand is being used efficiently and if there are outstanding payables that can be deferred. Scrutinising cash spent on a weekly or monthly basis can help your business budget effectively to avoid unnecessary expenses.
While most businesses operate on a 12-month budget cycle, the uncertain economic climate has required businesses to focus on short-term budget strategies. Scrutinise Cash FlowĪccurate and up-to-date financial data can help businesses control cash flow and provide the visibility required to stay afloat. So how can businesses adapt with the uncertainty these challenges bring? Below are some considerations for those seeking ways to keep their business afloat. Government actions enforced across the region have disrupted supply chains, and changes in customer demands are straining budgets as businesses struggle to keep up. Businesses have to evolve quickly to adapt to the uncertain economic climate.
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