We are gradually coming to the end of the lockdown as countries are set to restart the economy.

Businesses and household have been impacted negatively. Hence we must discern strategies to weather this storm.

Please find below some tips we consider useful for this time.

1. IT IS A BUYER’S MARKET:

Except you sell essentials, you will struggle to keep your price at the same spot.

Many sellers will be desperate to own a share of the market. This may lead to price war and consequently lead to reduced profits.
In all, the buyers will hold the bargaining power and use it to their advantage.

You must find a way to hold on to your loyal customers.
👉Offer them discounts before they ask.
👉Offer them extra values.
👉 Improve on your customer service.

You will need to do more to wade off competitors.

2. SUPPLIERS MANAGEMENT:
You will need to design your response to your supplier’s intrigues.

👉 They may withdraw the credit facility you enjoy or reduce.
👉 They may shorten your payment interval.
👉 They may demand additional collateral or prove of financial strength.

You must ensure you meet your obligations as at when due. Defaults may be seen as sign of overtrading or signs of bankruptcy. You don’t want to trigger a run on yourself.

3. CASH IS KING:

You must do everything you can to stay in cash.
👉 Give discounts to encourage cash payment.
👉 Reduce credit sales if possible. It may become more difficult for debtors to pay.
👉 Don’t over invest in inventory as sales may slow down.

4. CONTROL EXPENSES.
Ensure all expense are 👉Wholly,
👉Exclusively,
👉Necessarily &
👉Reasonably

Any expense that fails this test must not be incurred.

5. EXPLORE TECHNOLOGY.
👉 Expand your sales reach
👉 Reduce transportation & fuel costs by holding virtual meetings.
👉Review your processes and automate where necessary.

6. RUN A STRUCTURED & BANKABLE BUSINESS:

There will be increased efforts by government to jumpstart the economy.

Beneficiaries will have to show character, strength and structure through

👉 Audited Financial Statements (18,24 or 36 months)

👉 Tax Clearance Certificate.

These few tips you help keep you through this period.

If you need help preparing your Audited Financial Statement and Tax Clearance Certificate processing. Please call Taxdoctor on 08087183003