Covid-19: A Time to Reflect on Business Practices
Whilst restrictions imposed by Covid-19 are gradually being lifted, impact on businesses and business practices is long lasting and the importance of long-term planning and having a business succession plan is prevalent now more than ever.
From a workplace and employment perspective, there are some important issues arising from the impact of Covid-19 on the economy that need to be considered. It is vital to both small companies and large corporations to put active measures in place to help protect their businesses for the future.
In adopting a business continuity plan for a post-Covid era, below are some key takeaways:
1. Companies should identify essential and non-essential business operations – this means re-evaluating your current business model and making critical decisions such as whether to move certain areas online.
2. Improve transparency and communication with your people during a time of uncertainty – this promotes cooperation and a positive work environment and will give you a clear picture of the structure of your organisation, areas for improvement and help manage financial uncertainty. Further, you should consider whether a centralised system is in place that facilitates the transfer of information to allow for effective communication among management and employees.
3. Plan for financial uncertainty – this allows you to regain control of the future of your organisation so if hardship strikes in the future you will be armed with data and have a clear understanding of what needs to be done.
4. Account for unforeseen emergencies – succession and contingency plans should include identification of successors, interim personnel and/or shared duties and responsibilities in the event someone becomes unwell or unavailable. This entails understanding the key people in your organisation (i.e. stakeholders, investors, business owners, management teams or employees) and preparing for a potential transfer of decision-making powers or business assets. Also, keep in mind that insurance policies and legal documents should be actively updated to ensure your business vision is upheld.
How can we assist?
In a world that is rapidly changing, preparation is key. We can assist you and your business with:
• conducting business audits and reviews of business structures;
• advise on and draft key business documents (including but not limited to, leases, terms and conditions of trade, shareholder agreements, employment contracts, wills, powers of attorney, work place policies); and
• advise on and prepare exit and contingency strategies for events such as Covid-19.
If you have any questions or would like to know more about business succession planning, please contact our office on 9212 1099.