Surviving after Covid-19: Financial management reshapes businesses for sustainable development
Covid-19 has created an earthquake, wiping out any resources businesses have built up in the face of the pandemic. In the context that Vietnam's economy is gradually adapting to the 'new normal', to maintain operations, business managers must continue to balance between cutting costs and not affecting the environment. businesses, and at the same time redirect investment appropriately. To prepare for future crises, this is the right time to review financial management goals, prioritize business areas, find differences, and train employees in the right way. new practice.
Review priorities and costs
First, businesses need to clarify strategic questions to help them quickly identify the competencies they need to gain a competitive advantage in the market.
1. What changes has the market made? What changes have customers and competitors made? What trends in the market today are worth noting? 2. Which solution to add value of products and services is suitable for businesses? Accordingly, can businesses quickly have a better competitive idea than their competitors? What is the current competitive advantage of the enterprise?3. Has the business invested enough and right for those ideas? Can investment costs shift from other areas to more competitive value-creating ideas?
Rebalancing costs, determining market needs and prioritizing goals, in addition, determination and efforts in areas that bring competitive advantages will help businesses quickly increase profits and enough power to develop.
Redefining financial management
Financial management is a very important job for business managers. Good financial management not only helps businesses maximize profits, but also helps businesses achieve set goals, build budgets and exceed growth momentum.
Financial reorganization is the first step to making a profit. Exploiting and properly using financial resources to ensure the most efficient use of capital.
Streamline the process, thereby reinvesting and developing such as cutting inefficient stages, correcting control loopholes, and adjusting inappropriate content in general and in detail. Read and understand current financial statements to understand the reality of the business, thereby restructuring, adjusting resources, rearranging to serve new directions.
Manage cash inflow and outflow closely, allocate resources clearly. Plan to respond to situations both in the short and medium term and choose “strategic investments”. This will help businesses quickly get the expected results.
Assess market changes and management
- Commercial sector: Along with the digital acceleration, the shift in consumer habits and behavior such as online shopping affects the change of the business environment. The need for technology is increasing, the requirements for digital transformation become more and more urgent and affect the survival of businesses.
- Supply chain disruption: The supply crisis has caused the focus to shift from efficiency and price to finding suppliers with resilience and flexibility and diversity in supply. Diversify the search for suppliers from other places, expand the supply, build many plans to proactively respond to unexpected situations.
- Information management and compliance: Synchronously manage the information provided by the business as well as information related to the business, tighten the management of related data such as bank accounts, money insurance salaries, invoices, documents, etc. Enterprise managers understand these things as well as the serious impact of these regulations on business operations. Thereby, changing thinking, building a management system and application to how to bring the best results
Train employees according to new operating methods
A crisis is a time when people need constant reinforcement. Managers should have a new operating method and widely propagate it, thereby maintaining the working spirit of the staff.
- Flexibility in working environment, working hours;
- Unifying thought and spirit in order to reach the common goal of the whole enterprise, not the individual leader's goal;
- Training on how to work based on access to technology, quick and timely manipulation;
- The ability to understand, share, and make efforts to interact with customers and bring the best products and services.
With new standards and skills, employees will become flexible, resourceful and support the business very efficiently and operating according to precise processes. Thereby, both businesses and employees achieve common goals, together find good and creative solutions, add value to their products and services.
Sustainable development is the desire of all businesses, from multinationals to small start-ups. After Covid-19, businesses understand more and more the importance and necessity of resources for sustainable development. With the sharing on what businesses should do to recover and develop after the pandemic, Vieter wishes to contribute to accompanying businesses to find solutions to achieve the goal of sustainable development soon.
