Many SMEs have been significantly impacted by COVID-19, with CEOs and CFOs focusing introspectively to resolve business issues. However, as this stabilises, good Private Equity thinking would say “this is the time to accelerate change and position your business for the future”. An opportunity to re-imagine your business for the new economy – post COVID-19.
Instead of embarking upon “operation patch up”, a complete overhaul may be the most optimal outcome. Make your business future proof. In challenging conditions lies opportunity – and if your head is in the weeds, now is the time to look up and take stock. That is the true art of Private Equity. Always think of the bigger picture.
Adapting to trends: An opportunity to fuel growth
The rapid structural change brought about by the government-imposed lock-down has caused some sectors to experience exponential growth – obvious areas relate to online technology and healthcare. Have you investigated what is happening to your sector or how you can reposition to grow into new sectors?
SMEs are typically uniquely placed, being small, nimble and adaptable, to respond quickly to changing demands and execute decisions promptly. An inherent understanding of your customers’ needs can help solidify your businesses position, helping you gain a competitive advantage whilst fuelling growth.
Productivity, productivity productivity
Potentially the world has changed with many people finding new ways of working post lock down. No doubt some will find productivity (as opposed to output) has decreased. However, many can now see ways of improving productivity, forcing suppliers and customers to work in tandem with them to make overall efficiencies (be that in manufacturing or services). Within our own business, we can now see new ways of working that improves client engagement and delivers increased capacity.
Is your head above the parapet and have you decided how you are going to tackle the post COVID-19 world?
Positivity in the face of adversity
SMEs account for account for 99.9% of the business population (5.9 million businesses), therefore their ability to recover, adapt and prosper is fundamental to the wider economy.
Smith Cooper continues to issue guidance and support to help our clients navigate this period of uncertainty, which has undoubtedly impacted some of our clients more than others. Despite this, we have been encouraged by the positivity shown in the face of such adversity.
We continue to encourage our clients to practice careful management of costs, preserve cash and working capital and reduce expenditure where possible whilst the economic recovery remains uncertain, but to also take advantage of the funding options available in the short-term.
If you seek any commercial advice surrounding COVID-19, please head to our comprehensive support hub, which can be accessed by clicking here. Alternatively, if you’d like to speak with one of our expert advisors about a particular topic, opportunity or concern, please get in touch.