Cash means more than gold - Get to #businessNEWusual - The Alternative ...
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Cash means more than gold Get to #businessNEWusual
Points for today
• Where are we now This is not a discussion on
• Where’s the world “How to access funding support”
• You need to rise above
• Thinking cash
• Right here, right now
• Beyond lockdown
• Help & resources
Where are we now . . . .
Social distancing • It flattens the curve
• Impact on healthcare
• It limits contamination
• It give you time to take
stock and plan
Redesign
Lockdown is the
drastic step of
enforcing social
distancing
What happens if you do not act swiftly? Protect yourself and your business – forward thinking
Source unknown; Data
accuracy not confirmed
Lockdown, or more
• Currently about 25% of the world is in
lockdown . . . . which is 1.95bn people
• How long will it last
• What is your business impact
Rise Above Uncertain Times • Take care of yourself • Exercise, socialize digitally, media detox • Get you mind into solutions • Stick to a routine • Do what you (almost) always do, just from home • You are NOT on holiday – You’re a business owner • P L A N, right now • Look after your employees • You’re their leader • They’re more uncertain than you • If in doubt, communicate – even if there’s nothing to say
Flatten your curve
Window to plan &
execute
C
C
a Delay peak
a
s s
h Reduce h
impact
i Without
i
m planning
m
p CASH RESOURCE
p
a THRESHOLD
a
c c
Planned & structured
t t
Time
Sunshine behind(?),
storm ahead(!)
Review your past year
• Understand your financial information
• Understand your business:
• Where did you make money – Products, Services,
Sectors
• Who are your best – PAYING – clients
• Who are your strategic partners
• Employees:
• Who added value; who took up a seat
• If you need to redesign, who would not be there
– Roles or individuals
Looking back helps looking forward –
understand who adds value to your businessBusiness landscape
What is your business status
Triage: ICU Triage: High Care Triage: Treatment
eg Hotel, restaurant, travel, eg Non-food retail, eg Food production & -retail,
leisure petroleum, technology healthcare
• Closed or lost +75% • Lost 25-75% of Revenue • -25% to ++% Revenue
Revenue
• Immediate drastic actions • Immediate planning • Future planning
• Cashflow critical care • Cashflow management • Cashflow planning
• Build a buffer • Secure future revenue • Cost management
• Make it past Covid • Capacity planning &
ProductivityUnderstand your context
• Where are you? - RED, AMBER, GREEN
• How critical is your situation – OR – what are growth prospects
• Which of your suppliers are RED, AMBER, GREEN
• This influences how you engage them
• Which of your clients are RED, AMBER,
GREEN
• This influences how you accommodate
them
How should people remember you in 6 months?
That determines how you negotiate todayGoal:
Triage: ICU (1) Collect cash; Don’t spend.
Survive the next 2-8weeks.
Cash out
• Immediate cost cutting: Stop all non-critical expenses NOW
• Negotiate: Business continuity ins? Bond cover?
• Landlord, SARS, insurance – Negotiate & defer payments
• Strategic partners – Suppliers
Cash in
• Find revenue sources – be creative; sell, sell, sell . . . :
• Restaurant renting out kitchen • Distillery making hand santitiser
• Tour operator leases buses to health providers • Digital / online offerings?
Access funding / grants / support
• Loans – payment holidays & bank facilities
• Grants & deferred payments (PAYE, UIF)Goal:
Triage: ICU (2) Critical skills retained.
Save (key) jobs.
Employees – Critical priority
• Communicate
• Employee roles:
• Who do you need; Who are non-critical – Exits? Roles combined?
• Changing hours, reducing pay (they have lower expenses as well)
• Kill uncertainty: Whatever you do, do it at once
• Communicate
• Owners:
• Lead by example – Cut your salary
• (old) Partners / co-owners that can exit?: Reduce cost, but defer pay-out
• Act in terms of the Law – BCEA, LRA, Bargaining Councils
• CommunicateGoal:
Triage: High-care Secure future revenues.
Stop money outflow.
Cash in
• Secure existing clients & revenue
• Medium-term: Which new customers & segments
• Ensure you can supply your customers: Manage supply chain
• Don’t give discounts – Give different offerings or more value
Cash out
• Stop money flowing out
• Extensive cost analysis – Remove non-core costs
• Staff & operational productivity
• Employees continually engaged – limit lay-offs
Access funding / grants / support
• Loans – payment holidays & bank facilities
• Grants & deferred paymentsGoal:
Triage: Treatment Build brand & reputation.
Secure new clients.
Cash in
• Optimise value to existing clients
• Secure new clients
• Trade ethically – Don’t hike prices
• Engage you supply chain – Can they continue supplying
Cash out
• Cost management & productivity
• Marketing & brand building
Staff engagement – plan the future
Access funding / grants / support
• Plan for growth & expansion capital
• Build your cash reservesPlanning
DO IT
• The end of the lockdown is NOT the start
of business
• Know that you have to Budget:
• RED: >75% revenue lost
• AMBER: 25-75% revenue lost
• GREEN: -25% to ++% revenue
• What funding / support is available?
• Have a plan – how will your business look
in 1 – 3 – 6 monthsResources & support
NOT AN EXHAUSTIVE LIST
• Government
• SARS, UIF, PAYE, TERS
• IDC, Tourism sector relief, Solidarity Fund
• DSBD (www.smmesa.gov.za)
• Growth & resilience facility
• Debt relief fund
• Private:
• Sukuma Relief Programme: BusinessPartners – Rupert
• SA Future Trust - Oppenheimer
• Motsepe / Naspers / Others
• Commercial lenders:
• Bank support (SARB relaxation . . .)
• Apply – even if you don’t need it
• Get your name on a list, even if you don’t use it nowTime Magazine May 15th 2017 We should have seen it coming, or rather . . . we should have acted sooner, or rather . . . it is going to happen again
TAB – join us participate in a Virtual Business Owners’ Roundtable • Business owners sharing ideas & opportunities - #realstuff • 6-10 business owners • Confidential, non-competitive • Global #1 at what we do • No-obligation virtual meeting
Wrap Up
Paul Malherbe +27 82 773 8811
pmalherbe@thealternativeboard.za.com
David Weideman +27 83 564 4132
dweideman@thealternativeboard.za.comYou can also read
