How Will Work Life Change After COVID?

 

The global spread of COVID- 19 has led to an unprecedented shock to economies and financial markets and could be described as a significant adverse change in acquisitions and mergers. In this turbulent period, companies, investors, and financial professionals need to re-evaluate all the concepts and parameters they consider when valuing equity. It may lead to significant changes within the office space too. As more and more people begin to return to work, is it likely to change so much? Here is how COVID-19 could change office design. The usual standard way of working in close proximity is expected to change, and this may even mean businesses are having to invest more money into these changes. 

It may mean that businesses of all scopes will have to re-assess their business plans to align with the government advice and their workers’ welfare. In the context of the above developments, companies must update their business plans, incorporating in them the effects of Covid-19. As a first step, it is advisable to make short-term forecasts for critical figures such as revenue and operating profit margin. Management should assess the impact of the crisis on the company’s activities based on the experience and knowledge available at the time. The estimates should start from the broader impact on the industry and end up in its position within it, as it is formed under the current conditions.

In summary, the factors that will shape the future financial figures of a company include the following:

  1. Possible closure of stores or facilities
  2. Distribution network problems
  3. Impact on customers and suppliers
  4. Change in the determinants of demand
  5. Negotiation of contracts with key suppliers and customers
  6. Impacts on corporate governance
  7. Limitations and delays in production
  8. Interruption of the supply chain
  9. Changes in human resources and the way we work
  10. Reassessment of the corporate strategy
  11. Changes in the regulatory framework

In addition to the effects of the above factors on a company’s results, it is equally important to assess their impact on capital employed and, in particular, on the required investments and working capital needs, at least in the short term. The updating of the business plan should also take into account the available sources of funding and the actions that will contribute to maintaining and improving the business cycle of the business. All of the above factors include inherent uncertainties, which should be reflected both in the cash flow forecasts, the preparation of alternative scenarios, and the discount rate calculation. If your company has already suffered during this period, then it is vital to look at ways to raise capital to go forwards and stay up to the government standards that all companies must stick to. 

Companies will need to be vigilant with their finances and positively sink into the company. This is because the changes will be long-lasting and are likely to continue long into 2021. It is possible to survive, but being educated on the matter will ensure a healthy and prosperous new year for your business.

 

Women's Business Club

Comments are closed.