What will it take to navigate this crisis? From my discussions with business clients it seems that business restructuring and renegotiation of bank credit is of imminent importance and need. For some organisations, near-term survival is the only agenda item. Others are peering through the fog of uncertainty, thinking about how to position themselves once the crisis has passed and things return to normal. The question is, ‘What will normal look like?’ While no one can say how long the crisis will last, I feel rather certain that what we will find on the other side will not look like the normal of recent years.

I believe that any business in any sector, will get a hit to its business and should be working on a holistic response based across five stages, leading from the crisis of today to the next normal that will emerge after the battle against coronavirus has been won: Resolve, Resilience, Return, Reimagination, and Reform.

I will just spend a few words on ‘Resolve’ and Resilience’.

Resolve: Many businesses are dealing with acute slowdowns in their operations, while some are at the other end, finding it difficult to meet demand in critical areas spanning food or household supplies. Yet I meet and hear of many businesses that are still sitting between 2 stools, held back by a level of inaction and paralysis. Should we all work from home or not? Should we close the factory? Should we keep operating from our office until a total lockdown is ordered? That is why this stage is called Resolve – the need for you as a business leader to determine the scale, pace, and depth of action required to safeguard the best interest of your business.

Resilience: As a business leader you are surely fully aware that the effect of the pandemic is an acute pullback in economic activity leading to liquidity and solvency challenges. Let’s be frank and honest – this is likely to result in a decline in economic activity that proves far greater than the loss of income experienced during the 2008 Financial Crisis or the Great Depression. So resilience is of vital necessity! Cash is king now more than ever. So immediate issues of cash management for liquidity and solvency are clearly paramount not just for the immediate but even after this pandemic is over. In reality much of your clients will experience uncertainty and personal financial stress. It is highly likely that businesses will need to act on a scenario of longer-term resilience plans as the ongoing shock will likely reset competitive positions forever – opportunities will be available for marathon runners not sprinters – hence the need of resilience. So do not just work on your immediate liquidity needs but plan ahead and see if you can restructure your bank loans. The sooner you do it, the better, as you need resilience to see you and your business through this.

I am ready to offer a helping hand to whoever wants it. Whoever wants to discuss any issues facing their business at this point in time, feel free to drop me an email on silvan.mifsud@emcs.com.mt

I am happy to have a virtual online and private discussion, at NO COST. Just a way of discussing various issues I talk about to so many everyday and lending a helping hand, based on my various business and financial experiences over many years. I always believe that there is some golden rule in nature that helping others when needed, is always rewarded at some point in the future in some way or another.