By / par Ron Coleman
How has COVID-19 impacted your business, and what will the next two years look like?
We can’t expect a full return to normal until a vaccine is in general use; therefore, to survive and prosper we need to adapt to the new normal. We need to be both proactive and reactive in this fluid situation.
There is a great deal of uncertainty around managing our processes. It is essential to review your insurance policies with your insurance broker to ensure maximum protection and identify areas of potential exposure. We also need to structure our businesses for consistency around our suppliers, employees, and customers.
Developing strong relationships with these pivotal business partners is essential, not only for you, but also for them. Let’s make this a win-win!
Manage your supply chain. Ensure that your key suppliers can and will continue to provide you with an adequate supply of product at reasonable prices and in a timely manner. By supporting them you support a solid, mutually beneficial relationship, which will reduce your stress and help your business run more smoothly.
Keep as many employees as possible in ongoing work. If you must hire, check everyone for COVID-19 symptoms. Explain to your employees that they are better off staying with you than going to another company where they might not get the same level of support and protection. Employees need security now more than ever. If some are having financial difficulties, show them you care and that they can depend on you. Having good, reliable employees with a low turnover rate can be a major selling point with customers.
Your customers also need to be comfortable with the contractors they are using. They are risking exposure having contractors on-site, and the risk increases if they change contractors. Solid, ongoing relationships minimize risks for both parties. Let them know how you are building relationships with your suppliers and employees.
So, focus on developing strong relationships with your workforce bubble. These are the people within your power of influence, and these efforts are more important than ever. This is also a great way to increase profitability.
The type of work you do will impact how you must respond. Apart from new construction, many contractors are involved in service, maintenance, and retrofit. In these industry segments, the situation is also critical. You must convince customers to not defer maintenance, replacement, or installation, and you must prove that calling you is their best choice. In cases where you are dealing with new customers you need to develop a script that will separate you from the competition. Become the contractor of choice.
Have you updated your website with the protocols you have in place? Have you sent emails to your customers providing them with the comfort and confidence they need to call you?
Whether you are a contractor or supplier, you must focus on cash flow. Your level of break-even sales has likely changed, and if you can’t maintain your workload, you are going to start bleeding cash. Now is the time to do some serious cash flow management. If jobs get delayed, holdback releases will get delayed, and progress billings will slow down.
Cash is king! Many building owners are having serious cash flow problems particularly in the office and retail sectors. Be extra cautious in getting paid in a timely manner. Also, some new construction is being delayed and that can also negatively impact your cash flow. Keep your financial institution up to date on your financial situation and put a contingency plan in place with them in case of need.
Be proactive. Form a committee to identify the exposures your company faces and develop and implement a plan of action for keeping up to date with the federal, provincial, and municipal directives. Check the regulatory websites daily. Now is also a great time to review your business systems and processes to maximize efficiency.
This issue is not going away soon, and the sooner we take control the more successful we will be. The industry will get back to normal over the next year or so—make sure yours is one of the businesses that comes back on top.
There are numerous government programs, both federal and provincial available to businesses and their employees. Also, your financial institution and the Business Development Bank of Canada (BDC) have options for you. Most recently the EDC BCAP Guarantee is available to exporting and no-exporting business who need access to additional financing. The Guarantee lets EDC share the risk with your financial institution. WWW.edc.ca/business-relief is their website.
Identify the relevant websites and visit them regularly for updates.
The following site will keep you up abreast of Canada Emergency Response Benefit (CERB), Canada Emergency Wage Subsidy (CEWS), income tax filing and payment deadlines and a variety of other federal initiatives.
https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update.html
You should also log on to your provincial government website to see what support they are offering. Look to your Association for advice also.
I believe that one of the biggest exposures for many people and for businesses is going to be quarantine either because an individual becomes infected with COVID-19 or are in contact with someone who has. You must isolate if you had close contact with someone who is even suspected of having COVID-19. With schools and colleges now open the exposure is even greater. Such a situation could cause serious disruption to your business. Many of us are feeling so much stress due to the uncertainty so be calm, be safe, be kind and let’s all support each other. This is a time for compassion, understanding and fellowship. ▪
