12 Tips for small family in times of crisis

 

1. EXTREME MANAGEMENT CONTROL:

The family SME should be very careful with your income and expenses. It is important to closely monitor market developments and sales. Thus, the forecast of cash short and medium term is vital to the functioning of the company under the circumstances in which we live.

2. CARE COMMUNICATION:

In times of crisis is particularly necessary to properly manage communicate different audiences with which our family business is related, ie banking, customers, suppliers, different administrations, employees, partners and of course all members of the family business.

The silence can be as negative as issues of information indiscriminately. You have to manage both internal and external communications, keeping our public informed of developments which affect our organization and the measures being carried out in connection therewith. Only then can we neutralize negative effects of rumors and inaccurate information.

3. STUDY COSTS AND INCOME FOR EVERY POSSIBLE SCENARIO:

Situations is important to estimate maximum and minimum risk, to provide for any contingency actions in each. Sanki products. They have to design different categories of possible actions, redefining the goals to try to minimize the possible negative consequences of the crisis.

4. BUDGET ANALYSIS AND DEBT:

Depending on the flexibility available, it is necessary to adjust the income provided on company expenses. The existence of loss increases the risk of business closure. For this reason we should focus some efforts in securing finance or refinance debts to try to correct. Above all be on the financing of working capital is essential.

5. WATCH THE DELEGATION OF DECISION:

Faced with uncertainty, many decisions previously delegated or automated, should be examined and perhaps centralized again.

6. RECONSIDER AND INVESTMENT PROJECTS IN PROGRESS:

It is necessary to rethink the projects in progress or planned, keeping those not expected to improve short term results or billing. 4life products. Since we are in a different setting, review the validity of the estimates made before the period of crisis.

7. BE ALERT TO POSSIBLE CHANGES IN THE MARKET:

The situation and the worsening of expectations caused continuous and accelerating change in the patterns of behavior of actors in the market, which requires continuous monitoring of changes that have occurred in sales, and the reactions of business competitors. tiens products. The faster the company's response to changes in the market, the better you can plan the strategies to restore the business.

8. BE CAREFUL WITH OUR REACTIONS:

The crisis is a delicate situation, why should not make hasty decisions. Be imposed temperance. So disliked is the massive reduction in staff, such as hiring out to do it indiscriminately.

9. POSSIBLE SCENARIOS PREVER once the crisis:

There is a post-crisis and we must think about it. The employer has to figure how to get the industry to rethink the search for new markets and products for when the crisis ends. Develop new strategies and perhaps a new marketing plan, sure to be a new stage.

10. REVIEW OF FAMILY ARRANGEMENTS:

In this new scenario we need to rethink everything we thought it would be useful in times of prosperity for the members of our corporate family. Nikken products. You need to talk and reach new agreements if the crisis is affecting us in a big way, both relational and economic aspects.

11. REVIEW FUNCTIONS AND RESPONSIBILITIES OF DIFFERENT ORGANS OF GOVERNMENT AND ADDRESS:

Consider the need to form crisis staffs, redistribute responsibilities and review the members of various boards and committees, looking for people more prepared and experienced in similar circumstances.

12. CAPITALIZATION POLICY REVIEW:

We must rethink our level of capitalization, and if necessary seek the injection of fresh money, guaranteed to generate trust in our business to third parties and our family.

Studying this capital increase with family members who, despite being partners, have never contributed cash to our family SMEs as they are by donation of shares.