Safeguard your business is important. Many have speculated about whether the current coronavirus outbreak will spark an economic recession.
Renowned venture capital firm Sequoia Capital recently shared their experience of best practice, advising that, “Having weathered every business downturn for nearly 50 years, we’ve learned an important lesson: Nobody ever regrets making fast and decisive adjustments to changing circumstances.”
So, here are 3 ways to safeguard your business as coronavirus spreads.
1. Safeguarding the Upstream
It could take months until the true effect is understood with the goods being shipped on container ships. But then, your suppliers (and their suppliers in turn) will have an idea of how, if anything, this could affect you.
Your best choice is to pick up the phone and speak to the companies directly about how you can work together to minimize the disturbances.
Let them know what your goals are, and suggest solutions. Be frank and direct. Many companies would appreciate your call and your willingness to collaborate with them to find the best solutions.
2. Assisting the Downstream
Sadly, your customers could also be affected, and this could put you in your suppliers’ position. You may not be able to satisfy orders depending on your supply situation. Or, your customers may not be able to buy the quantities that have been agreed upon or anticipated.
It is your responsibility to educate them and find out how to better address the current and planned problems at hand.
To the degree you are able to produce and deliver, it might be wise to offer temporary discounts or more generous terms to make sure your customers do not pump the brakes.
But make sure you have your cash flow situation under control.
3. Protecting Your Organization
If you expect production to slow significantly, it may be a good idea to allow employees to stay home or work part-time.
Another choice is you may be able to close your office temporarily. This eliminates the risk of someone exposed to the virus taking it to the workplace. And also, causing other workers to become ill.
But make sure you don’t send people home without pay and without a choice. Many do not have a buffer they can fall back on, so you want to make them an offer and let them choose.
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