The 5 pinnacle of flexibility in turbulent times

The year 2019 is almost over and we are on the verge of facing a new and coming decades, while every one of us hopes for a progressive and synchronized growth, yet still it seems that our global economy is far from overcoming the confluence of risks that could severely disrupt economic activity and will make a noticeable impact. The trade war between China and the United States is a big part of the reason. The conflict has made it difficult for many global firms to plan their operations,

There are several downside risks that could yet result in a most disappointing outcome for the world economy. Persistent and rising global imbalances, high and rising oil prices; continuing geopolitical uncertainty, any one or a combination of these could result in growth slower than we currently expect.

Learning this, Flexibility is vital for sustained rapid growth, Individuals and firms need not to react to the situation, rather to be able to respond positively to these risks and taking the necessary actions, Being flexible helps businesses to be more resilient and less vulnerable to the effects of the next global downturn.

So, how do do we Achieve flexibility during this turbulent times?

1. Improving Cash Management If a customer is King and so is cash for any types of businesses, It is the lifeblood of the business and without a healthy flow being generated, businesses will be faced with many challenges which may lead to as a failure, such as conducting it’s routine activities i.e. paying suppliers, purchasing raw materials, and employee payroll and possibly making investments.

Effective and efficient cash management is important, some suggestions to put in place are: (but not limited to:)

• Monitor your costs and your inventory, always get the best possible deal from suppliers (get quotes from different suppliers) to learn about better pricing or even better payment terms.
• Analyze Inventory turnover — Figuring out effectively, which items are selling and which aren’t.
• Make a consultation — A Professional Accountant can help you make inventory management and cash flow projections and to implement working capital strategies that are just right for your business.

2. Strategic Human Resource Management An orderly and Strategic Org Chart is really a must in the development and growth of a Company for it to achieve its goal the soonest possible time. Identifying the correct Job Description and knowing the correct number for certain Positions will lead to Work efficiency and high morale of the employees which will definitely have a positive effect on the company for a long time.

In some instances that a budget cut is really needed, then there’s will always an option to outsource some HR Related Services such as Payroll processing, Maintenance, Security and etc. This allows the company to have flexibility in their budget so they can either use it for other purposes that will benefit the company in the long run.

3. Flexible Office Arrangements Businesses must stay and remain flexible given the current economic climate, the need to keep business costs down and financial commitments is important than ever, Business owners who ignore the impact of flexible arrangements and their ripple effects on the broader office market are making a mistake.

Many firms have found that such arrangements can represent smart management practice for which the benefits outweigh the costs, In order to achieve flexible workplaces and decrease operational risks below are some strategies worth considering

Be clear with Leasing Structure -Commit to short-term lease agreements that align better with their current resources and prospects, this is beneficial to take the stress and fear out of lease commitments, for SME’s and Startups there’s no need to sign up for a long-term agreement if your growth plans are unclear. Having a clear understanding of the terms and the financial ramifications, measurements and specifications, allows you to make sure you plan for the future

Utilize Co-working spaces — With the challenges faced committing to Long term may not be something that would work for all types of businesses, utilizing what works for you and the business is always is the best option, Coworking spaces provide the flexibility to set their own schedule and work when they prefer. No need to work around certain operating hours or someone else’s schedule, this type of setup takes away the worry about additional utility bills or service providers.

4. Strategic Admin and Miscellaneous Expenses Just as like having a strategic human resource management it’s also important to maximize expenditures by having regular audit that will identify the needs to avoiding unnecessary expenses and reducing costs on Office Administration. We all know the saying, Every drop counts and in Business it really is.

5. Embracing Change The only constant in life is change, and in Business everyone should be able to adapt to our ever changing world not just in Technology but also for people, whether they are your manpower, business contemporary or partners and direct customers. Knowing what they need and feel is essential for a business in maintaining flexibility in any time or situation.

Certain partnership on events may benefit every company since it will provide an opportunity for each to discuss certain challenges and strategies that are working and not.

In summary, being flexible during the challenging times is a roadmap to success, Always ahead and staying on top of what is working and what’s not, and always making sure you are evaluating what’s happening with your bottom line, your customers.