The economic impact of the COVID-19 virus is becoming increasingly unpredictable. The projections range from bad to gloomy ones. Therefore, enterprises should react quickly.
In the upcoming weeks and months, companies should design scenarios that reflect potential developments and possible impacts deriving from these scenarios. This is the basis to decide what measures need be to undertaken. Both, short-term survival and medium-term development are a priority.
In general, you need to address the following elements:
Audit your current financial situation completely, with as much transparency as possible. Stop spending and making unnecessary investments. Talk to suppliers about extending payment deadlines. Try to collect as much owed debts as you can.
- Customer management
Proactively contact your customers with the help and work with them to find the best possible solutions in this crisis situation. This may include, for example, optimizing orders, renegotiating terms and conditions of delivery, and so on.
- Supply chains
Check your supply chains and look for alternatives – for example Europe instead of Asia. Train your responsible staff in line with these changes.
Critically analyze whether and to what extent you can reduce production or service capacity. It is worth considering options to reduce or stop work on shifts, shorten working hours or work yourself 2-3 days a week.
Adjust staff engagement and compensation in line with new capacities and schedules. Although no financial support package has been applied in Kosovo so far for enterprises affected by this situation, try not to terminate employment contracts with your employees. Remember how difficult it is to find suitable staff and how difficult it is to train new staff and integrate them into the enterprise.
Talk to your bank to provide the necessary loans that enable the continuation of your company’s existence. If you have credit liabilities, ask the bank for a debt reprogramming and an increase in the current account framework.