Dispatch #74: Post-Pandemic Housekeeping: Pause and Reflect Before Moving On
As future-thinking business leaders, we’re by necessity planning a few years out for a post-COVID-19 operating environment.
But before we mentally put the pandemic behind us, let’s focus on a short housekeeping checklist. A brief “pause and reflect” to consider―and fix―a few tactical matters now can prevent a host of serious problems from disrupting operations down the road.
Are our health and safety protocols rock solid in terms of both physical execution (protecting people) and documentation (e.g. OSHA logs)?
Do we have enough working capital, financing, and bonding capacity to withstand future shocks to the business, without counting on government assistance?
Are our electronic audit books airtight with respect to our participation in the alphabet soup of government aid programs: PPP, FFCRA, FMLA, ERC, EIDL, etc.
Are we reading, understanding, negotiating, signing, and abiding by customer, supplier, and subcontractor contracts that protect us from force majeure, supply chain disruptions, and similar events?
Are we 100% on top of accounts receivable billings and collections?
Are we protected from material and subcontractor delivery delays and price increases: both preventing them and minimizing damage to customer relationships and job profitability if they do occur?
Most important of all, do we have a proactive, best in class program for attracting, developing, and retaining people in all areas of the business?
The time we dedicate now to buttoning up each of these items will pale in comparison to the disruption later if we're caught unprepared by another downturn/emergency. Let’s heed the structural lessons from the past year to strengthen and protect our companies in the emerging post-pandemic landscape.
Need help with this or other financial matters faced by construction contractors? Let’s talk!
David Stern CFO makes every effort to provide useful and accurate information. This content, however, is not intended as a substitute for specific business-related financial advice. We disclaim all warranties and liabilities from its use.