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Turning Uncertainty to Your Advantage
COVID-19 has affected every single one of us, whether it is on a personal level or a professional one. It is certainly a time for increased uncertainty and anxiety when it comes to looking after ourselves and our loved ones.
However, it also offers a unique opportunity for us all to work on improvements at home, or at work, in a way that can make us more resilient for when we return to a sense of normality.
From a business perspective, the government has introduced a wide range of valuable assistance measures aimed at stimulating the economy and supporting businesses to trade their way out of trouble.
Such measures include relief for companies and directors that are aimed at protecting them from failing during the crisis. For example, giving directors a moratorium from insolvent trading laws or relaxing timeframes and ways in which creditors can pursue debts.
There is a lot of motivation to act now when there is no personal liability for directors for insolvent trading and take the first step to initiate a business restructure, as you are most likely not going to get that opportunity ever again.
Taking advantage of these government measures presents a chance for a business turnaround that many savvy business owners are capitalising on.
Currently, there is a significant opportunity for businesses to develop strategies that might be out of their ‘comfort zone’ and assume different risk profile to develop a survival plan - if not a permanent solution - before it’s too late.
Recognising opportunities and focusing on the positive, not just the negative, is key to a successful business restructure. For example, Olvera Advisors are currently working with its’ private clients to:
- Provide independent analysis of current and future financial performance
- Delivering cost out programmes and exit strategies for underperforming assets and operations
- Re-negotiating onerous contracts and obligations with suppliers and stakeholders
- Identifying the mechanisms that drive profit growth and cash flow generation
- Building financial models which forecast and track financial performance; and
- Developing and implementing communication strategies to lenders and investors.
Whist this crisis has many devastating effects for many, for others it has forced us to reassess our goals and ambitions both personally and professionally.
As we recover from this crisis, do you want to be different? And if so, how? The pandemic is a great opportunity for businesses in all industries to reset and grow.
Those business thinking proactively and with a clear and planned strategy will be at a distinct advantage as the economy begins to recover. Essentially, it’s about how agile you are and how quickly you can pivot towards the future.
