- Damage control steps companies can be taking right now to mitigate the effects of the COVID-19 outbreak and
- A way to quickly evaluate alternative courses of action through the current or any future business disruption crisis
It’s nearly impossible to plan for a “black swan event” such as the COVID-19 outbreak, and the pandemic is forcing businesses to work on damage control by conserving cash, working with lenders to maintain liquidity, and pursuing the extraordinary government assistance being offered in these extraordinary times.
Beyond damage control, managing through this or any other disruptive event is complex so having a way to quickly evaluate alternative courses of action is important. One way reduces the thought process to four variables – duration of the disruption, lost business volume during that period, the profitability of that volume, and additional expenses incurred due to the disruption.
Companies that take the potential for business disruption and the need for continuity into consideration before a disruption occurs are better situated to manage their way through its impact. Getting input from a range of advisers can help identify the vulnerabilities of a business and develop plans to minimize those vulnerabilities, whether they’re financial, legal, operational, or some other aspect of the business.
Disruptive events occur unpredictably, so the sooner companies begin to think about business disruption and continuity, the better position they’ll be in the next time a disruption occurs. For more information, or questions regarding how to manage business disruption, contact us.Categories: Small Business, Valuation, COVID-19 Resources