Now is the time to begin preparation for long-term recovery from the shutdown due to the novel coronavirus (COVID-19). Proactively planning and making business decisions to preserve business continuity helps your staffing firm build resilience. As you continue to navigate these uncertain times, be sure to pay attention to key areas and steps to take to handle additional, potentially severe business impacts. Reshaping your business plan now will help with recovery long into the future.
Follow these guidelines to prepare for long-term recovery from COVID-19.
1. Prioritize People
Ensuring the safety and well-being of your staffing firm’s job candidates and employees is your top priority. Openly communicate about questions and concerns. Provide transparent guidance on the steps you’re taking to protect against COVID-19. Share as much information as possible about your business continuity plans. Let employees know whether they have the option of working remotely to further protect themselves. Discuss employee well-being programs and policies that support your safe working environment. Regularly communicate updates on government and health authorities’ policies regarding the coronavirus to help navigate through the changes.
2. Rethink Business Strategy
Modify your staffing firm’s business strategy to accommodate shifts in customer needs and behavior. This should include monitoring your short-term cash flow to anticipate and prepare for shortfalls. Keep an eye on your working capital, especially collecting receivables, to lighten the working capital cycle. Madison Resources can help with this. Assess and quickly respond to financial and operational risks. Monitor direct cost increases and their impact on overall margins, then renegotiate to reduce long-term financial stress. Stress-test your financial plans for various scenarios to understand the potential impact on financial performance. If former budget assumptions and business plans no longer are relevant, revise them to remain agile. If you need additional business intelligence or funding, talk with Madison Resources.
3. Communicate with Stakeholders
Provide ongoing, transparent communication with relevant stakeholders. Let customer
s know whether there may be impacts on the services your staffing firm provides. This may involve revisiting timelines for candidate placements or employee start dates. Talk with creditors and investors about renegotiating terms and conditions on loan contracts as needed. You may be able to make amendments to existing terms or refinancing arrangements. Keep in mind that Madison Resources can provide funding to cover any shortfalls.
4. Stay Informed About the Coronavirus
Remain current on the latest developments regarding COVID-19. Use a reliable source, such as the Centers for Disease Control and Prevention (CDC), to verify the information you learn about. Determine how the data can affect your staffing firm. If the pandemic continues to spread, consider how it may create health risks to your candidates and employees and financial risks to your business. Find ways to avoid or alleviate these risks.
Include Madison Resources in Your Planning
Make Madison Resources part of your long-term planning. We provide the funding, business intelligence, technology, and back-office support needed to weather any storm. Learn more today.