The Current Economic Development
The recent course of the COVID-19 pandemic allows for a cautiously optimistic outlook on the near future. Progress in vaccination continues, restrictions on public life are gradually being lifted, and the economy is recovering. In May, the ifo Business Climate Index rose to its two-year high. Over the past 18 months, the focus has been strongly on crisis management. Many companies have been successful in this regard, have weathered the pandemic relatively well, and now look ahead to the coming months with much greater optimism.
Analysis of Existing Structures
If, however, one steps back from the—justified though it may be—optimism sparked by recent developments and objectively evaluates the overall situation from an external perspective, several central questions may emerge:
- Is my company prepared for the market and competitive challenges that will reemerge in a post-COVID environment?
- Is my business model, with its current product and service offering, still sustainably viable for the future?
- Is my financing structure stable, or should existing financing partners be reassessed and financing possibly restructured?
- What potential exists with regard to the pre-financing of my business activities? Can I sustainably optimize my cash conversion cycle?
Looking Ahead
In recent times, the focus has been primarily on short-term survival. Now, however, attention should shift toward shaping the future with a longer-term planning horizon. It is equally important to reflect on what lessons can be learned from the past months. Even if the crisis was managed successfully, the necessary concentration on immediate COVID-19 measures may have obscured the fact that the resilience of the business model was already vulnerable before the pandemic. A targeted analysis might therefore consider questions such as:
- Can supply chains be structured in such a way that my company’s supply situation does not collapse in the event of a crisis?
- Have precautions been taken, and do I have the necessary instruments to always secure my liquidity?
- Is my strategic orientation sound? Which strengths, weaknesses, potential, and resources does my company have, and are the steps toward achieving my long-term goals clearly defined?
- Are there opportunities to sustainably stabilize and improve my business model, increasing resilience in the next crisis and perhaps even enabling my company to develop internal strengths from seemingly negative external shocks?
The re-unit Multimedia Series
In the coming weeks and months, re-unit GmbH will address these and other topics in a multimedia series. In open dialogue with regional partners, the discussions will center on the challenges entrepreneurs face after overcoming a crisis and how these challenges can be tackled. As a long-standing and qualified sparring partner for regional companies, re-unit GmbH aims to support the development of sustainable, long-term, and resilient business models.
Our Expert in Restructuring
Director Thomas Gabor has been working for more than 25 years on the restructuring of business models with efficient value creation processes based on reliable financing. For this multimedia format, he seeks dialogue with recognized experts from various disciplines to discuss current and future challenges of the regional SME sector.
Look forward to exciting and insightful contributions and discussions. You will soon find the posts on our blog as well as on our social media channels—feel free to stop by!
Do you have questions and/or suggestions regarding the topics mentioned above? Then get in touch with us—we look forward to hearing from you.
Your contact at re-unit:
Thomas Gabor – Director
Tel. +49 531 180 59 300
E-Mail: mailto:t.gabor@re-unit.de
