How can you react in the crisis? What are the options? Checklist for entrepreneurs in the corona crisis …
At least the following 6 points should be considered in the context of a possible rough concept and supplemented with company-specific measures:
1 Check finances and constantly optimize them
For an optimized liquidity planning, all departments of your company apply right now to “control” the costs. For example, constantly reevaluate each department of the company on a weekly basis.
You should delete all non-mandatory expenses including all upcoming investments. If possible, postpone new projects. Negotiate with suppliers about longer payment terms if you have not already done so. Your warehouse should be adapted very closely to the production options. So you should rebuild little storage capacity if possible. There is currently also the possibility of deferral of social security contributions and taxes. Good tax advice should be able to suggest the best way to do this.
2 Operate actively customer management
You should be open and active in communicating with customers about the common situation. Approach your customers directly and communicate the current situation.
Keep in touch with your customers. If possible, you should renegotiate the order sizes, delivery dates and conditions with your customers. Try to modify the products and services and adapt them to the new market situation. Use the possibilities of digitization. e.g. Offer web seminars
3 Also try to build alternative supply chains
It is now important that you look for alternative suppliers in good time (e.g. Europe instead of Asia). Follow the trend of building new supply chains in geographical proximity in the future. It definitely makes sense to do a new training course in purchasing. You should renegotiate order sizes, delivery dates and conditions with the suppliers to reduce your cost structure.
4 Try to reduce employee capacities
Have the shifts reduced and opt for an introduction of 2 or 3 day week. So you can also by switching off certain production lines
To cut costs. Of course, you should work closely with the workers here. The best thing to do is to coordinate with the employee representatives.
5 Predictive employee management is now necessary
Adjust the home office regulations. Check the possibilities for a home office in all departments. One possibility is the formation of representative but independent working groups or complete organizational units (Team A and Team B) that work on a rolling basis in the office or in the home office. Within the framework of these changes, the use and renegotiation of working time account regulations is possible. The possibilities of (unpaid) vacation and short-time work should also be discussed with the works council.
6 Reconsider application for credit
What options do you have to increase your liquidity again? Now count on a long “dry spell”. According to various studies, the upswing may not start again until the 4th quarter of 2021.
(a) Talk to your house bank.
(c) Via state institutions from the Corona Fund
(d) Based on a rough concept that shows needs and refinancing