Many businesses find themselves in unprecedented financial difficulty due to the impact of COVID-19 on our economy. We’ve made it our mission to help our clients navigate through cash flow constraints to ensure the continuity of their businesses. Some of our clients had to revamp their business strategy altogether due to supply and demand changes. In times like these, financial agility and foresight is key.
Here’s how we’ve been able to help our clients over the past year with our financial management services. Firstly, we’ve kept a close eye on the financial health of each business. Monitoring their cash flow, revenue and profit and highlighting areas of concern proactively so that management can make the necessary operational adjustments. We started by scrutinizing the business’s variable costs and encouraged them to renegotiate rates and payment terms where possible. Next, we reviewed fixed costs like salaries, rent, insurance, utility payments, etc. to identify potential areas for savings. By identifying areas where overheads could be reduced, businesses were able to meet their critical working capital needs. This shift towards running a lean business is a trend that will linger long after the pandemic is over.
Some businesses faced the unpleasant reality of going into business rescue, but we were able to discuss alternatives for accessing finance to help keep them afloat and assist with the reports needed for their applications to financial institutions. A positive cash flow is vital for the preservation of a business’s future and to keep their core activities running. Teams were rallying together with a renewed focus on sales to increase revenue. In some cases, they had to consider diversifying their product or service offering and change their business model to create new revenue streams with a shorter cash lifecycle. Companies have realised that having a disposable income buffer for the unexpected is an important part of business risk mitigation and many have taken steps to prepare for the next rainy day.
To show our support and give our clients peace of mind that we were weathering the storm with them, we had to increase the frequency of our online meetings and communicate more proactively. We helped them focus on the initiatives that would drive their revenue up as teams rallied together to find new solutions and change tactics. By increasing the frequency of our financial reporting, we were able to keep them focussed on the right activities. Looking back now, I’m grateful for the way the pandemic has strengthened the relationships with our clients and for the foundation of trust that was fortified with them.
Please get in touch if you’d like to discuss our financial management services further. We would love to assist you.