Page 14 - Newsletter July - Sep 2020__

PERSPECTIVES BY SKC
Article
Financial Planning in times of COVID-19
COVID-19 pandemic in 2020 has affected us all - from individuals to families, small businesses to large corporates, from governments to the whole economy. The intensity of the impact may vary, but no one can deny that they have been affected by this in one way or the other.
Besides the health scare of COVID-19, the biggest hit that the world has taken over the past 6 months or so have been in terms of a financial hit. Markets dipped to substantial lows, many businesses became unviable, production and supply got stalled, and eventually, many workforces were laid off, again leading to a personal financial crisis. The months of March, April and May 2020 were the worst hit for most countries, and as the government started easing norms gradually, some business activity started easing out during the months of June and July 2020. However, the impact which the closure of 2-3 months had on the economy and businesses would take a lot of effort, time and planning for organizations to reach back at the levels they wanted to be before the COVID-19 crisis emerged.
As most of the businesses are trying to get back to the track since the last couple of months, how
they plan their financial strategy is going to be very crucial which may ultimately define how quickly and efficiently they are able to turn around their businesses. Finance broadly revolves around two aspects - profitability and cash flow, and your plan needs to ensure that both are met. Also, any aspect of planning should cover for both short term and long term needs of the business, else the decision making can be flawed.
Considering above, below are the five key areas of financial planning which every entrepreneur must ensure in order to rebuild their organization during and post COVID-19 crisis:
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