Business financial rehabilitation after the COVID-19 pandemic is a huge problem for many South African business owners who are struggling to get their businesses back on track again.
Financial Disarray during the COVID-19 Pandemic
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Business rescue can be an excellent tool, but it eventually results in liquidation. This is very unfortunate because business rescue is a costly process. Which poses the question:
What's the purpose of wasting all that money to save the company if it's likely going to be unsuccessful?Every entrepreneur has a dream. Each dream is unique. Some want to be their own boss; some want to make money because they can't find work. While others have a passion.
It is a dream, hard work, and a labour of love that is ending. Because of this, choosing to fight for or abandon the business is the most difficult decision in the world. It goes beyond financial responsibility and embarrassment.
How do I rehabilitate my business financially after COVID-19?In response to the COVID-19 rules, business owners set up virtual offices and stopped paying for office space. Business owners had to learn to think outside the box, and employees started working from home. The pandemic is over. Therefore, your business ought to return to normal, right?
Is working in a virtual environment advantageous for businesses?
Depending on the type of business you have, if it is possible for you to continue working in a virtual environment. I believe it is important for every business to save as much money as possible to guarantee the business recovers sooner rather than later from the
effects of the Covid 19 Pandemic.
Is it advisable to resume operations at my physical offices instead of continuing in a virtual environment?
This allows the employer to ensure that employees return to work and that the firm can be managed as it was before the epidemic began. Remember that it is more difficult now that staff have become accustomed to working from home.
Be prepared to face some resistance from them. The funds they regularly set aside for travel have probably been allocated elsewhere. Consequently, this action won't be well received, and therefore, this raises the following question:
Why not keep working virtually and save on office rent? This is an excellent notion if management is capable of effectively managing both employees' time and the quantity of work done at home. Perhaps a compromise in which, instead of working full-time at home or in the office, employees work remotely twice a week and are required to be present at the office in the case of a crisis.
Ultimately, this is the employer's decision, and if the employees refuse to comply, it is evident that employers are willing to lose a staff member, than give in to their demands. If you're an employee, I recommend treading lightly if you rely on your permanent position to support your family.
Is it possible to monitor personnel while they are working in a virtual environment?Different online applications and tools can help manage employees and ensure their productivity at home and at work.
But it begs the question: Is it truly advantageous for business owners to have their personnel work remotely instead of in the office? Of course, there are positions that can be filled virtually, allowing for potential savings in terms of salary, as the individual works remotely. However, one must consider the long-term sustainability of this approach.
Is it possible for a business to recover from the impact of the COVID-19 pandemic, or will it ultimately have to shut down because of unproductive employees?
Every business owner has to consider this question and find the right balance between saving money on office rent and salaries.
It really comes down to the level of engagement the employer has with their employees and whether the business is managed online as strictly as it is in the office. In my opinion, established businesses had a higher likelihood of surviving the challenges posed by COVID-19.
Despite the unfortunate impact of the pandemic, a significant number of established businesses had to shut down. However, it is worth noting that a larger number of small businesses experienced closure.
Effective management solutions for employees working remotely
It is recommended that business owners and managers hold a weekly meeting with their employees, maintain daily communication with them, and prioritise discussions on problem areas and remote staff management strategies.
Guidelines for working remotely
It's important for all staff members working remotely to follow a standard set of rules.
Submitting work on time should not be compromised due to load shedding. Consequently, if the employee doesn't have the necessary tools to manage load shedding and its impact on their work and deadlines, they won't be able to work remotely.
It is important to have a reliable internet connection and be available by phone or virtually during work hours.
What if I am unable to meet my monthly responsibilities but have potential income in the near future?
Business owners can approach creditors to negotiate payment plans, providing a smooth transition from the financial rehabilitation period following COVID-19.
But is it really the best option to engage creditors directly to re-negotiate payment arrangements? The answer is "no."
Employ a debt mediator with NCR accreditation!
When business owners attempt to handle business debt mediation on their own, the likelihood of achieving success is very slim. Creditors may exploit a challenging situation, attempting to pressure the business owner into making payments beyond their means.
Unfortunately, this could potentially lead to legal repercussions or even the liquidation of the company. However, with the help of a professional debt mediator, creditors are more likely to be favourable towards the arrangement.
Where do I go from here?Appoint a
Business Debt Specialist to negotiate repayment plans on your behalf. That way, you can ensure that all the necessary processes and documentation are submitted without your business being placed
under business rescue.
This will provide you with sufficient time to
recover after the COVID-19 pandemic and not fall behind on your business’s monthly obligations.
Where can I find assistance?
Contact Cure Debt today to assist you with the negotiation for the repayment of your monthly obligations without being placed under Business Rescue.
Disclaimer: This article is provided for informational purposes only and does not constitute legal advice. Call
Cure Debt before making any decisions based on this information. The information is current as of the publication date.