We There Yet? The Post Pandemic Financial Plan - Celia Powell

Are we there yet? The Post Pandemic Financial Plan, Season‌ ‌4‌ ‌
 ‌
Introduction‌ ‌
 ‌Are we there yet? Is a question many business owners are asking as they struggle to predict how their businesses will transform once we move into the post pandemic phase of COVID-19.  The latest news about how our country COVID-19 statistics are reporting a downward trend in cases most likely attributed to the vaccinations administered.  There are sure signs of hope that we will be moving past where we are in our business environments and life in general. Many business owners will have to redefine business models and strategies to continue to compete in the marketplace, which is evolving as a lightning pace. There are critical considerations to make in the attempt to figure out the finances of the business.

The good news is we have some very very smart people figuring out what’s ahead and what we should be doing to move into the “New Next”, of our businesses and I’ll share the insights and findings from the analysts in the field of business analytics. Let’s walk through frameworks and approaches to implement or consider as we move forward in 2021, profitably post pandemic.
 
Show‌ ‌Objectives‌ ‌-‌ ‌The‌ ‌Why‌ ‌
 As business owners, we have to face some realities, and the first is that the world has irreversibly changed, the pre-pandemic world is gone.  The second undeniable reality is that the COVID-19 rocked the world and impacted most all 8 billion on the planet.  The third reality of the pandemic that should be of interest to business owners and that is it has created demand and new opportunities. After today’s conversation, our listeners will have valuable insights on how to plan for the post covid business operation. 

Listener’s will have an advantage by knowing the current trends and forecasting that may impact their businesses. Lastly listeners will gain knowledge that they can apply to their financial strategies as they prepare for post pandemic operations.

Key‌ ‌Issues‌ ‌-‌ ‌​Owner/Manager‌ ‌Perspective and Challenges

• Unchartered territory, where to start?
• Overwhelmed with managing the business:
• Finances are unstable and unsure if resources are available to cover payroll and other expenses.
• COVID-19 vs Government regulations.
• Risk management‌.

What‌ ‌You‌ ‌Need‌ ‌to‌ ‌Know:‌‌ ‌Trends

• Customer needs and expectations have changed
  • Accenture’s 5 Human Truths:
    • Customer confidence will erode, which will increase the importance of trust.
    •  Virtual services and interactions will become the norm.
    •  A health-related economy will emerge and redefine customers’ expectations and relationships with businesses. 
    •  ‌People will be more likely to “cocoon” at home, which will impact products, services, delivery, and so forth. 
    • Government authority may be redefined in certain regions, depending on how well those governments handled the crisis.
• Work Environment
• Digital Technology

What‌ ‌You‌ ‌Need‌ ‌to‌ ‌Do‌​‌ ‌-‌ ‌‌The‌ ‌How‌ ‌
  Frameworks
 

• McKinsey and Company Five Stage Framework
• Deloitte’s Flexible Scenario Planning (see IBGR.network Episode F3-4.010 Scenario Planning for the Stage IV Growth Plan)
• Boston Consulting Group (BCG) Scenario-based planning strategy 

Post Pandemic Financial Best Practices

• Understand your historical financial details 
• Measure your company’s cash flow.
  • company’s free cash flow (FCF),total amount of cash a company has after accounting for its cash outflows
  • look at your FCF from a month-to-month basis
• Do not eliminate departments
  • Salary Cuts
  • Business Loans
  • Furlough & Layoffs
• Adapt to modern times
  • Adopt a remote workforce, not having an office will help your business save money that would have been used towards rent, utilities, insurance, office supplies, travel, and more.
• Ask for help
  • When creating your 2021 budget, bringing in a business accountant or using accounting software can help make your business “recession-proof”.
  • Use a bookkeeper to help balance your business budget, make sure that you select the right person for the job, (Episode F4.003 The Right People on the Bus, Building a Winning Finance Team) 

Article‌ ‌links:‌ ‌ ‌
Creating a Post-COVID-19 Business Plan: The Complete Guide (walkme.com)
Budgeting Post-Pandemic: How Your Company’s Budget Will Change in 2021 - Dr. Terri Levine (heartrepreneur.com) 

Shows‌ ‌
Previous:‌ ‌ ‌Episode‌‌ 3‌  ‌‌The Right People on the Bus Building a Winning Finance Team
Next: Episode 5‌‌  Do We Really Have to do All the Things? 
 
 
Written‌ ‌by‌ ‌Celia‌ ‌L.‌ ‌Powell‌ ‌CPA‌ ‌
www.celiapowellcpa.com

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