Suzanne Breton
Senior Manager | MBA | Management consulting

The coronavirus crisis is having a serious impact on many SMEs. It’s a stressful situation, but it’s also an opportunity to change the way we do business.

Countless businesses have had to slow their operations or even close as a health precaution, which cuts them off from their main source of income. But the lull has also freed up extra time. This is a good chance to rethink your business strategy and find new ways to deliver your services or generate revenue. Here are a few things you should consider when reassessing your business model.

Promote online sales

Self-isolation has boosted e-commerce, so it makes sense for companies to include online sales in their overall strategy. If you already have an online shop:

  • Introduce deals or discounts to promote sales;
  • Cut shipping costs to remove this disincentive;
  • Offer freebies to get your name out there and boost sales of your other products or services.

Choose alternative sales methods

If your company doesn’t have a transactional website, see if you can use existing platforms or other means to liquidate stocks. For example:

  • Partner websites;
  • Secure sales portals;
  • Telephone sales with products available for a scheduled pick-up or delivery by an external partner.

No matter which method you choose, make a point of promoting gift cards, which are a good short-term cash source.

Use technology to provide your services

There are great tools available to help professional service companies manage their customer relations and accounts:

  • Turn to tech platforms like Zoom, Skype and Google Hangouts to keep in touch with clients and offer virtual support;
  • Create content like webinars and live videos to keep relationships alive and maybe even generate new revenues.

Your business could benefit from support measures, such as the government’s initiative Le Panier Bleu, the City of Montreal’s urban delivery and digital shift support, as well as a Québec program to help update the skills of your employees. Consult the summary of available support measures, updated on a regular basis on our website.

Innovate today to prepare for tomorrow

In the current context, customer needs are changing all the time. It stands to reason that the services they require today will be different from those they need tomorrow. How can you prepare for new expectations? It’s time to start innovating by developing new value-added products and services.

This is a time for renewal, so seize the opportunity to make adjustments so that your business will be stronger than ever when the crisis ends.

This is also a good time to review your business model and client journey so that you can determine how to protect business continuity in the future, no matter what happens.

For example, you might want to add new technologies for offering and distributing products or services.

Maintain your customer relations

No matter what happens, keep the lines of communication open with your customers:

  • Remain present on traditional and online media;
  • Send relevant information in your customer newsletter;
  • Engage with customers on social media.

Use all channels and methods to strengthen relationships with current customers and be seen by prospects.

Share insights about the things you and your team are doing. Ask your customers about what things are like for them. Maintain close ties with your audience.

Be creative and engaged. When things get back to normal, you’ll be in a better position to resume operations.

Provide top-level service

Your business has slowed down, but you still have loyal customers? Take this opportunity to coddle them. By going the extra mile for certain clients, you’ll strengthen their fidelity and secure them as your ambassadors when the economy picks up.

As hard as things may be right now, this period presents an opportunity to reinvent your business, find new ways to create value for clients and expand your offer to generate income and keep your clients.

It’s not always easy to know which avenues to pursue. Our experts are there for you. They can help you reassess your business model and develop a winning strategy.

25 Mar 2020  |  Written by :

Suzanne Breton is a senior manager at Raymond Chabot Grant Thornton. She is your expert in...

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Nancy Jalbert
Partner | CPA, CA | Management consulting

When external circumstances like the coronavirus impact business operations, focus on each affected area to control damage.

So many variables can affect your operations. As a business leader, you need to assess sales levels, personnel availability, operational inputs, equipment capacity, work teams, infrastructure quality and technological capabilities. Each of these considerations can impact your ability to achieve production and performance targets.

When a crisis strikes, several problems can surface, including:

  • Unpredictable sales volumes, with substantial increases or declines;
  • Variations in employee availability, affecting their hours or ability to travel. In some cases, workers may be entirely unavailable;
  • Supply chain disruptions;
  • Product scarcity or unavailability.

The keys to effective crisis management

If you want to minimize business impacts and maintain an equilibrium, you may need to adjust certain procedures. Carefully evaluate each variable impacting your operations, assess associated risk levels and establish priority actions.

Here’s a summary of what you need to consider.

Dynamic production planning

  • Clarify employee availability;
  • Assess supply chain issues and how they could impact production;
  • Assess your company’s capacity surplus or shortage;
  • Determine which tasks aren’t critical to business continuity and eliminate them in priority order;
  • Implement a dynamic production planning tool and increase planning cycle frequency;
  • Set up tracking mechanisms and schedule frequent checks with the sales team.

Technology optimization

  • Use available technologies to run simulations of different scenarios.

Actual cost reviews

  • Assess how volume fluctuations are affecting your variable and fixed costs, and determine your breakeven point;
  • Develop a plan for reducing fixed costs.

Implementing these actions can help you control costs and improve operations. When combined, small actions can make a big difference. Do the right thing for your business’ future by preparing for the unexpected.

Our operations analysis experts can help you implement fast and effective solutions so that you’ll be ready for whatever lies ahead.

24 Mar 2020  |  Written by :

Nancy Jalbert is a partner at Raymond Chabot Grant Thornton. She is your expert in strategic and...

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Nancy Jalbert
Partner | CPA, CA | Management consulting

Supply chain management is critical for many businesses. When a crisis hits, you need to proactively reinforce your supply chain so that you can continue meeting customer demands.

It’s important to take a structured approach to logistics planning and organization so that your business doesn’t find itself in a tough situation. Effective planning can prepare you for issues such as:

  • A supplier being out of stock;
  • Delayed delivery times;
  • A supplier being quarantined;
  • Shipping and distribution problems.

Meanwhile, internal issues could affect your ability to pay suppliers on time or meet your contractual obligations with them.

All of these factors could impact your operations.

How to secure your supply chain

Start by assessing the situation quickly and then moving forward with an action plan aimed at preventing problems and implementing solutions.

Monitor inventory levels

  • Keep an eye on variations in sales so that you can effectively estimate needs;
  • Establish critical inventory thresholds and build stockpiles as needed;
  • Create quarantine areas for certain goods;
  • Use the special inventory and restocking features in your management systems.

Strengthen relationships with customers

  • Find alternative shipping methods;
  • Adjust customer delivery schedules based on your suppliers’ ability to replenish stocks—and don’t forget to add a buffer;
  • Contact your clients and be transparent about the situation.

Cement relationships with suppliers

  • Control cash flows so that you can pay for shipments upon delivery;
  • Determine who your critical suppliers are and check in to see how the situation is affecting them;
  • Look for replacement suppliers as needed and contact them as quickly as possible;
  • Negotiate payment terms with your suppliers.

All businesses will be facing a certain degree of volatility in the coming weeks, which will force them to be flexible in their operating procedures and dealings with suppliers and partners. There are several factors that can influence supply chains, and these factors can change quickly.

Now is the time to look ahead and take action before issues arise. But rest assured that you don’t have to do this alone. Our team is available to help you get through this challenging period. Put our expertise to work for you. Together, we can weather the storm.

24 Mar 2020  |  Written by :

Nancy Jalbert is a partner at Raymond Chabot Grant Thornton. She is your expert in strategic and...

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The coronavirus outbreak is affecting businesses around the world and forcing entities to carefully examine how the situation might affect their financial reporting. This IRFS Alert looks at the impact of the coronavirus for the year ended on December 31, 2019.

Is the coronavirus crisis considered a post-reporting period event (also known as an adjusting event) for the year ended on December 31, 2019?

  • Entities should review IAS 10 – Events after the Reporting Period to determine whether or not the coronavirus crisis is an adjusting event.
  • We believe COVID-19 surfaced and spread in 2020 and that there is insufficient evidence that it existed at the end of the reporting period on December 31, 2019. This therefore makes the outbreak a non-adjusting event.
  • Entities should ensure that the valuation of their assets and liabilities as at December 31, 2019 is not affected by the coronavirus crisis, which occurred subsequently.

Disclosure

Entities must disclose if a non-adjusting event has had a significant impact on their financial statements. Any such disclosure must include the nature of the event and either an estimate of its financial impact or an indication that the impact cannot be estimated.

Do you have questions about the coronavirus’ impact on financial reporting?
Our team is here to help.