Time to refresh, reassess and return to the driver’s seat

As we look toward the second half of the year and reflect on the past six to 12 months, hopefully merging from the worst of the pandemic, many businesses are cautiously optimistic.

In Limerick, we have witnessed the significant impact of the pandemic but also the resilience of the business small enterprises.

While many companies have suffered, many others are weathering the storm. As the country begins to reopen, there is an opportunity for businesses to refresh, reassess strategic objectives and consider how daily activities deliver for the company and the needs of customers and clients.

With a strong presence in the Limerick and Midwest business community, we have advised clients across all sectors on how to navigate the challenges of the pandemic and are now guiding them on how to grow proactively.

Revised forecast and financial planning

Organisations should assess all available cash resources, including lines of credit, and compare them with projections to establish the impacts on sales volumes and demands?

Cash collection will have implications on the above and therefore, the company needs to develop an action plan for the next 12 to 18 months and prepare revised cash flow statements.

This may include access to additional external funding or an expense deferral programme. All of this will help companies make informed decisions and identify any other support they might need.

Prioritise core business activities

Organisations are seeking new ways to increase efficiency and control costs while maintaining continuity of service. Outsourcing certain activities, such as payroll or accounting services, will allow organisations to focus on their core business activity and operations, meet compliance obligations and access specialist expertise without significant investment.

Stakeholder engagement

Each organisation faces a unique set of challenges and must engage with stakeholders such as employees, shareholders, customers and suppliers. Businesses should assess whether key staff members will return to work, operate on a hybrid model or work remotely permanently. 

Shareholders may want to review the company’s affairs and define priorities. Organisations may also need to check the supply chain. Is there a reliance on critical suppliers who may be disrupted? Will customers receive sufficient supplies?

Over the past several years, Mazars in Limerick has enjoyed continued success, working with local indigenous and international organisations that have invested in the city, county and broader Midwest region. A clear focus on strategic objectives, the core offering, correct capital structures, staffing and overall quality in delivery and exceptional client service will facilitate opportunities for growth for these businesses looking to the future.

Richard Maguire is a partner, audit business advisory, at the Limerick office of Mazars