Accounting Counts: Facing The Post COVID-19 World

Questions To Ask In Times Of Change

ByAlison Piccolo, CPA, CA

With the rapid emergence of the COVID-19 pandemic, many businesses are finding themselves in survival mode, while others may have started to look towards recovery and the new reality, rethinking what their operational models look like.

The tendency for owner managed and family businesses to pull together in times of crisis, puts them at an advantage — but as the world adjusts to its new normal, here are five questions entrepreneurs and business owners may want to consider when examining the longer-term strategy for their business.

1. What will my market look like, in a post COVID-19 world, and what has changed permanently?

The market and landscape your business operates in may be unrecognizable. Your competitors may be struggling or have ceased to operate, or moved into new product lines.

Consumer behaviour has likely also changed. As a result, you may need to invest in new products, marketing, or even consider acquisitions of complementary businesses to bolster your offering.

On the other side of the same coin, consider your own business in its entirety.

Are there parts of what you do or offer to customers that are starting to look less essential? And if so, how quickly can they be adapted to be more profitable? It’s important to also look at, not just what your business does, but how it is run.

Succession planning is a top-of-agenda priority for family businesses and aging business owners at any time, but especially so in times of crisis and uncertainty.

The impact of COVID-19 has caused many business owners to think harder about succession plans and in particular, the different roles the next generation could play to help shape the business for the future.

This period of change may be the ideal opportunity to bring in new and fresh perspectives on every area of your business.

2. What will my balance sheet and funding structure look like and how might that need reworking?

The myriad of government programs for businesses represents the biggest support to owners and entrepreneurs, and will no doubt have been crucial for the survival of many.

It’s important to think of the longer-term impacts of these measures, in particular, what changes will you need to make to loan repayment schedules, payroll, supplier contracts and more, to make sure your cash flow is still adequate in the coming months? Deferrals are not permanent and, if not properly planned for, can cause further headaches down the line.

Another consideration is your relationship with funders, investors, or other stakeholders.

Our alliances are only as strong as how they fare in times of crisis, and it may be time to reconsider some of your working relationships to ensure you have the support you can rely on in the future.

Similarly, the current situation has made many families consider how robust their family governance is to manage risks and make investment decisions about the family’s wealth. Perhaps now is the time to either create or update a family constitution or structure a family council to better protect the family wealth and (re)design those contingency mechanisms that will help both in the present and in the future.

3. What risks have become apparent in this crisis, and how can I address them?

One thing is for sure, the last few weeks have tested businesses to their limits, exposing their strengths and weaknesses like nothing ever has before.

It’s particularly important for business owners to consider the bigger picture of how weaknesses can be addressed.

For example, is your company too reliant on particular individuals? Are you over-exposed to particular geographies, or vulnerable to weak spots in your supply chain?

Don’t forget to think about your internal organization at all levels — speak to your staff to find out about the headaches this has caused them and start thinking about long-term solutions from all perspectives. While overcoming the current pandemic might be the obvious victory, futureproofing your business is the bigger prize.

4. What have I learned about the culture of my business — the good, the bad, and the ugly?

Many family businesses are underpinned by a shared purpose which in turn drives the values of their company. In times of crisis and change, this is often tested.

Did your organization align behind a shared purpose and how did it guide key decisions across the organization?

Families should reflect on whether their goals and vision need rethinking, or whether they are still aligned and brought to life at every level of the business.

A significant challenge facing owner managed and family businesses is keeping remote workforces engaged and motivated.

Existing employee engagement initiatives and programs might have been based entirely on in-person interaction, and now, pending our new reality, may require a complete makeover.

And while many of the operational decisions being made at senior or boardlevel might be business-critical, it is vital to make sure employees are kept informed on a day-to-day basis and that core activity such as health and safety initiatives and training programs are made relevant and sustained as much as possible.

After all, it’s the employees that make the business and their wellbeing is important.

5. What does the action plan for my business, in this new reality, consist of?

Last, is to invest the time to turn all of these considerations and conversations into concrete steps for action, working with your business leaders or family members towards the new normal.

It doesn’t have to be a solo endeavour. With the right guidance and support, it’s possible to come out of the other side stronger and better prepared — to face the post COVID-19 world. Alison Piccolo is a Chartered Professional Accountant and works for KPMG in Windsor (KPMG.ca). Alison has 15 years of experience in public accounting and currently leads the local Owner Managed Enterprise practice. She works directly as a trusted business advisor to privately held companies, assisting with audit, accounting and tax matters.

Made To Shade Has Your Windows Covered

By Dave Halliday

You sit relaxing in your den. It’s so quiet and peaceful. You have noticed that at about the same time each day the natural sunlight filters into the room at just the right intensity to provide a warm relaxed glow.

Luckily for you it seems to coincide with your afternoon break from the grind of working from home in this COVID-19 world we are currently living in.

The period of ideal natural light however, intensifies as the sun streams more directly through the window. The change ironically acts as a natural timer letting you know your break is over.

Although you don’t intend to stay on break all day you find yourself wishing you could somehow extend the period in which the warm glow of the natural light fills the room perfectly.

The desire to control the natural sunlight in your home is easy to identify, but the manner in which it can be achieved may not be as evident.

Biz X magazine was able to discuss some of the options with Michael Campoli who is founder, owner, sales representative, window covering consultant, and window covering installer at Made to Shade Window Coverings Ltd. (MadeToShade.ca).

Made to Shade Window Coverings has been serving the needs of local residents for the last 15 years (celebrating their official anniversary in May) and Michael has over 30 years of personal experience that he was kind enough to share with us.

Starting with the question of our current times. How has the recent COVID-19 crisis changed your day to

day operations? “The COVID-19 crisis

Professionally installed blinds, such as the Vision Eclisse Shades pictured, can complement the décor of any room. Photo courtesy of Rebecca Campoli.

has changed our day to day operations since we weren’t able to provide our free-shop at home consultation to our clients,” notes Campoli continuing, “This inability made it difficult for our clients to choose window coverings that would complement not only their windows, but their home décor.”

So how has your company overcome

these obstacles? “Now, with Ontario implementing different phases to reopen businesses (in mid-May) we are taking all the necessary precautions to keep ourselves and our clients safe so that we can continue to provide home consultations,” states Campoli. “We initially overcame this challenge by conducting virtual meetings to help clients view different window covering samples.”

How does Made to Shade assist the client in sorting through their options?

“At Made to Shade we bring a multitude of samples into the client’s home as this is the most beneficial way of sorting through window covering options as the fabric and colours can be viewed in the unique lighting of the client’s home,” he indicates. “We also help clients sort through window covering options by assessing how much sunlight

each window may receive throughout the day and by matching fabric colours to the customer’s existing decor.”

Describe the benefits to having professionally installed custom window

coverings added to your home? “The benefits of having professionally installed window coverings is that they are custom made to fit each customer’s window,” Campoli replies. “The professional installation also ensures the window coverings are properly installed, leaving the customer with a worry free experience.”

What are the benefits of Dual Shades? “Eclisse Dual Shades feature alternating bands of sheer and solid fabric that create varying dimensions of light,” he describes. “The solid bands can be shifted to overlap for optimal privacy or the solid bands can be aligned for a natural diffusion of light and illumination. The combination of sheer and solid fabric allows the shade to seamlessly transition from open to closed, providing a modern solution for light control and privacy.”

What are Roller Shades? “Roller Shades are specially crafted from a large selection of fabrics, with clean lines, straightforward operation, a large selection of fabrics, and achieve their popularity for their premium style and versatility,” informs Campoli. “Multiple light control options are made possible as the fabrics range from lightfiltering, room darkening, and complete blackout. This exceptionally versatile design easily adapts to any style of home, from traditional to modern, and to any business or commercial space.”

Are there any new technologies or

developments in window coverings? “The latest development in window coverings is that they can be motorized, either by rechargeable battery or hardwired,” he comments. “Motorized window coverings can be operated by remote control, as well as through mobile applications. Motorization is an innovative tool due to the increasing demand for home automation and child safety.”

The light in your den is now perfect throughout the day and it has at least allowed you the versatility to take your breaks whenever you wish.

Being forced to work from home has come with challenges, but like everyone else facing the similar situation, you have learned to make the best of it.

You have also discovered a rather timely secondary benefit to the new window coverings – a feeling of privacy. Like many of us, you have determined pants are essentially optional when working from home!

Stay safe, everyone!