Potential for a significant drop in consumer demand due to higher unemployment, potentially higher taxes and reduced disposable income;

Reduction in available capital for investment and working capital for companies with weak balance sheets;

Fundamental shifts in consumer behavior – reduced aggregate demand and a shift to online commerce;

Possible significant labour shortages in certain regions, sectors and skill sets (despite high unemployment) due to pandemic effects, internal migration between localities and immigration restrictions;

Changing work, office and travel practices, and how it impacts business development, infrastructure management, customer service and role definition.

  We recommend taking the following steps today to set your business up for a more sustainable future.

1. Get an in-depth grasp on your financial situation, both from a cash flow and balance sheet perspective. You need up-to-date and accurate information to make key decisions;
2. Revisit any shift in customer and channel needs – customers may be trading down within categories, deferring or even abandoning purchases;
3. Reconsider your operating model. The ability to quickly and efficiently scale operations will be important when the economy re-inflates – consider new operational approaches;
4. Accelerate digital adoption. Though it may be painful, now is an ideal time to automate manual, routine activities and digitally enable operations and value delivery. The use of advanced data analytics can improve decision making, optimize spending and enable tighter customer relationships;
5. Retool your supply chains to build resilience and reduce operational risk – look to diversify your supplier base, including adding local vendors;
6. Prioritize talent management. The operational agility required in these difficult times puts a premium on having a skilled yet flexible workforce. Companies should emphasize generalist skill sets and IT competencies in their recruiting and revisit their training and succession plans;
7. Explore untapped markets. Seek out new markets that could be disrupted with existing strategies, products, brands and capabilities;
8. Be realistic – your enterprise may be in a certain industry that may not bounce back to what it was pre-COVID. It may be time to consider a strategic pivot.

  Building a recovery plan doesn’t have to be a challenge you face alone. MNP is ready to support businesses as they explore opportunities and examine their path ahead. Visit www.MNP.ca.