Uncertainty has been a consistent theme of the last five years. The threat of tariffs from the U.S. has heightened the sense of uncertainty, making it difficult for business leaders to act decisively or with confidence.
This crisis will eventually end, as all crises do. The key to remaining resilient through challenging periods is stay informed, take measured actions, and work with your team of advisors.
It is critical to think about how you'll position your business to navigate these potential challenges. In this insight, we outline actions to take to ensure your organization is prepared for whatever comes next.
Six actions to help define your vision
To reposition your organization for the current environment, consider:
- Refining the vision for your business: What client problem or opportunity do you exist to support? Is that still as relevant now as it was when you started — or is it time to shift gears?
- Adapting your current business model: Are your internal processes and practices optimized to generate and deliver goods and services affordably, at scale, and at a consistent standard?
- Your organizational structure: Does your workforce include the skill sets needed to deliver on your vision/business model? Can you leverage other resourcing models, such as contractors?
- Your immediate and long-term technology needs: Is hardware/software costing more than it’s providing? Could you efficiently scale or pivot with your current infrastructure given an unexpected challenge or opportunity?
- Your financial health or any (interim) financing needs: How do you rate your ability to weather sudden price increases, shifts in demand, foreign exchange volatility, etc.? Reach out to your advisors for help making decisions that will support the sustainability of your business.
- Taking steps to risk-proof your organization: Are you confident in your ability to identify emerging threats and develop strategies to manage them? What resources do you need to be more adaptable to change?
Building on these considerations, chart a course of action to implement the necessary changes to your people, processes and technology and achieve your vision.
Building a strong team
The above six actions will help you define a clear vision for the future of your business and understand the world in which you are operating. With that defined, your next step is to identify and build the bench strength necessary to thrive in the new environment for you and your business. The following guide will help you understand who, when and where to reach out.
Group 1: Financial management (including cash management and tax filings)
- Review cashflow and determine cash needs, establish financing and maintain loan payments, etc.
- Maintain compliance around tax and regulatory filings.
Advisory team: Accountant, Business Advisor, Banker.
Group 2: Workforce and employment issues
- Review labour standards and employment codes to understand obligations.
- Mitigate further financial liabilities and legal challenges with the support of an advisor.
- Focus on keeping the right skill sets within your workforce as business changes.
- Implement strategies to maintain communication and improve morale.
Advisory team: Labour Lawyer, Workforce Advisor.
Group 3: Business operations and continuity
- Analyze the volume and dollar value of what you export and/or import from the U.S. Getting this baseline now will proactively help once there is more clarity on tariff rates.
- Assess your customer-base and the potential for new or evolving markets, including moving into new jurisdictions or product/service offerings.
- Review networks for delivering and distributing your products/services.
- Review supply chain networks.
- Undertake financial modelling to review your product mix, pricing, expenses and overall profitability.
- Evaluate your discretionary spending to contain costs.
- Implement cashflow planning (collections, receivables and payment options).
- Conduct workforce costs models and scenario projections.
Advisory team: Performance Improvement Consultants, Business Advisor, IT Service Providers.
Take the next step
There are planning actions you can start on today to improve your business resiliency. These include:
Finance
- Perform financial modelling to review your product mix, pricing, expenses and overall profitability.
- Evaluate your discretionary spending with a focus on reducing or eliminating expenditures and conserving cash.
- Implement cashflow planning, including regularly monitoring collections and staying abreast of aging receivables and sales to customers struggling to pay on a timely basis.
- Model your workforce costs and burn rate by developing scenario projections based on short- and long-term opportunities and challenges.
Customer and supplier relationships
- Evaluate opportunities to offer payment options to your customers, while still protecting the value of the receivable.
- Focus on customer needs throughout this period of disruption to understand any challenges they are experiencing with your product / service and how you may need to evolve.
- Reconnect with your suppliers to review their supply chain projections and whether they anticipate any disruptions. Build these discussions into your financial model to anticipate any additional adjustments which may be required.
For example, consider whether you will have interruptions in your supply chain and for how long; or whether you will have the ability to build up inventory to sustain any supply interruptions.
Market and product diversification
- Identify potential new markets. Some organizations may need new suppliers or there may be a local product gap created by change.
- Explore opportunities to diversify your products or services. This is an opportunity to reflect on what your customers need and how your organization is positioned to support them.
- Look for mutually beneficial partnerships with other businesses, such as leveraging your sales channels to offer each others’ products or determine innovative ways of integrating service offerings allowing you to expand your market reach.
Contact an advisor
For support, contact your local advisor.