Recession Planning and Fine Tuning Your Business Plan – Making the Right Choices Now
Whether we want to call this a recession or just unfortunate circumstances, I think that we can all agree that business is being disrupted. Group50 is ready to help our clients to navigate these waters. There are a series of steps every company has to go through in order to properly plan for this disruption and given that we really don’t know how bad it is going to be, there needs to be contingency plans that are launched as certain trigger points are hit. Those trigger points could be cash, sales, inventory, a combination of all or others that critically define your business.
Most important is that your recession plan take into consideration the following items:
- Optimizing the use of the CARES ACT which provides funding to companies of all sizes
- Working within the guidelines of your state’s labor laws
- Thirteen week cash-flow projections
- Contract Review
- Workforce planning
- Cost takeout
- Development of a working capital reduction plan (Think inventory)
- Properly managing the supply chain and its resiliency
- Product profitability review
- Customer profitability review
- Continued product and market development
- Leadership and human capital strategies
- Process Re-engineering
- Business transformation
- Leveraging technology
- Contingency plans launched by trigger points
To get more detail about these items, feel free to click on the picture and watch a 1 hour webcast from subject matter experts in Finance, Leadership and Operations.
Group50 has developed a Recession Planning Workshop, which is part of our Company Physical (50+ different assessments and workshops in finance, leadership and operations), that is designed to help senior leadership define what needs to be done to address the above and set the appropriate trigger points. The plans need to be building blocks leading up to each trigger point and they all need to be focused on the end game which is to be prepared for when the economy comes back to its normal state and every business will be faced with satisfying the pent up demand from this current disruption.
We have put together recession planning teams who have experienced many economic cycles during their corporate careers and know recession planning best practices and Do’s and Don’ts. We have developed a virtual model of this workshop so that it can be done quickly, with the appropriate social distancing and lower cost.
It is important that you make the right choices now so that you can weather the storm and come back stronger than ever.