Most notably, the early move and the provision of cash and commodity reserves
Awareness ... 14 bases that support the success and continuity of companies in the market in 2021
Mohamed Helmy: "Economic fluctuations bring unrequited opportunities to conclude valuable deals, such as buying a smaller company or merging two companies."
Managers should pay attention to any glitches in the business of the company and act quickly before things get worse.
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The financial expert and tax agent, Mohamed Helmy, identified 14 rules that support the continuity of companies in work and excellence, in light of the spread of the Corona virus, and the negative repercussions that followed on the business sector.
Helmy told Emirates Today that life has started to return to normal and brands document their achievements, thanks to the flexible economic policies in the Emirates, which dealt with global crisis management with high professionalism, containment and full support for all business sectors.
In detail, Mohamed Helmy said that the plans and strategies of companies with the beginning of 2021, should be based on the following:
1- Early action: Starting with early steps to protect against the effects of expected economic fluctuations will benefit more from the final recovery that occurs after the end of the fluctuations.
So managers should pay attention to early warning signs of any malfunction in the company's business or in the external environment and move quickly before the situation gets worse.
2- Attention to growth: companies need to achieve a balance in performance that is concerned with the growth of the company and not only by reducing its expenses, as the growth of the company affects the improvement of profits to a greater degree than the effect of reducing costs.
3- Providing cash and commodity reserves: It is important for any company to maintain cash reserves to rely on in difficult times, and commodity reserves are no less important than cash reserves.
4- Maintaining cash flow: It is important to maintain a reasonable degree of liquidity from the cash, the availability of the necessary financing for the company's fixed assets, so work should be done to facilitate the transfer of cash from sales to expenses, and to collect customer payments immediately.
5- Expanding the customer base: It is important for any company to maintain its customer base, and companies can achieve this, by adding value to the purchase process without incurring additional costs, and companies must seek to obtain new customers.
6- Preparing for more than one scenario: The management should assume the occurrence of different scenarios and plan how to respond to each of them separately.
7- Taking into account the differences within the company’s sectors: The first reaction to preparing for any potential risk is often to provide the company’s resources by reducing costs and expenses, but this procedure should not be done randomly, for example some sectors of the company may have attractive growth opportunities, so that the best behavior is It is to protect the budget of these sectors, and to make the necessary cuts elsewhere.
8- Adopting a long-term perspective: Companies are interested in maintaining the continuity of their activity and production in the short term, but this should not lead to ignoring long-term planning and farsightedness.
9 - Seizing the available opportunities: Economic fluctuations carry opportunities that will not be repeated by concluding valuable deals, such as buying another smaller company or merging between two companies, and seizing these opportunities would save huge sums of money for the company.
10- Using flexible solutions: In light of the uncertainty of the economic future and the spread of uncertainty, it would be useful to use flexible solutions, for example simplifying work procedures, and planning for short periods to facilitate adaptation to new information and emergency events.
11- Making use of technology: Technology carries economic solutions to the problems of many companies, and they are badly needed in times of economic fluctuations.
For example, technology contributes to ensuring high product quality and reducing error rates in production.
12- Identifying what is important and what is not important: you should focus on the company's strengths, which enabled it to serve customers effectively.
Business that no longer adds value or is ineffective should be stopped.
13- Increasing employee productivity: by working to reduce employee turnover, and providing a satisfactory work experience for the employee.
14- Corporate vision: times of economic upheaval represent an opportunity to materialize the company's vision and mission in practice.
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