Covid-19 will not only affect the health of the country, it will also have a significant and potentially lasting impact on our economy.
So what can we expect from the virus, in regards to its affects on businesses in South-Africa?
In terms of the duration of the virus, the longer it is not contained, the more damage it will cause to the economy.
This could start to affect the profitability and cash flows of growing numbers of companies, which is particularly serious for those with high levels of debt who may struggle to make payment.
The South African economy is already weak, the Covid-19 is a serious risk to the economical health of the country and in turn, the health of our businesses. The way forward for businesses, is to adapt and find solutions to work around the virus to ensure their doors stay open.
Businesses have moved to an online presence and their services are now available online. With a click of a button, customers can reach them, without leaving their homes. Innovation is key in these times, the quicker businesses revisit their business plans and means of survival, the better chance they have to survive.
So what can your business do to survive the Covid-19 pandemic?
Keep informed – Stay up to date with what is happening in the economy.
Update your financial statements – Ensure you have the latest versions of your financial statements before making a decision.
List possible impacts on your business – list the impacts that the virus can have on your business sectors.
Perform a financial health check on your business
Re-do your budgets with new assumptions
Increase online sales
Taking precautions in your business and re-analyzing your business’s structure and way of doing business is vital in surviving a possible recession, caused by the virus.
For us, you are more than just a number, contact us for your financial statement analysis and let’s discuss how Counteractive can help your business to fight this coming recession.
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