Revived optimism has taken hold of many Canadian business owners as the country’s economy turns the corner on the coronavirus crisis and heads towards a post-pandemic recovery. According to Scotiabank's 2021 Canadian Business Outlook Report, 78% of mid-to-large sized businesses are feeling extremely or very optimistic about the future of their company, with more than half (53%) anticipating that their business will change for the better in some way.
Along with their revived optimism, Canadian mid-to-large sized businesses are mindful of the challenges that lie ahead. As Canadian businesses plot their operational strategies for the year ahead, Scotiabank recommends:
Five Key Priorities for Recovery and Growth
1. Plan your Liquidity and Cash Flow
Begin scenario planning for 6-12 months ahead. Evaluate your cash flow, employee requirements, supply chain and inventory, and variable and fixed expenses (including additional costs related to COVID-19, like PPEs for employees). Perform an early “spring cleaning” of your expenses by reviewing and reducing non-salary costs that don’t impact your product and service quality.
2. Invest in your Workforce
Studies have consistently shown that engaged employees are more productive. It’s important that you provide support to your employees during and after the pandemic: project optimism, communicate regularly with your team, and promote diversity and inclusion at all levels. Leverage the CEWS program to maintain and invest in your employees and above all, embrace remote work – it’s now a competitive advantage that can draw new talent on a wider geographical scale!
3. Dive into Digital
Take advantage of the many tools and resources available to help your business grow its digital capabilities. Explore opportunities for your business to incorporate online innovation, and investigate ways to process customer payments faster, such as Scotiabank’s Interac for business. As your circumstances fluctuate, agile operating processes can also adapt quickly with changing conditions.
4. Test New Operating Business Models
Be bold and think of new or innovative ways to operate ‘outside of the box’; whether that means expanding in this low interest rate environment, partnering with other businesses, mergers or acquisitions, etc. Consider pursuing supply chain diversification that includes local or multiple suppliers to increase your operational resiliency.
5. Reach your Strategic Goals with a Great Banking Partner
Now is the time to reach out to your bank. The survey revealed that more businesses who feel supported by their financial institution state their company is doing better now than pre-COVID-19. Many financial institutions offer customized financial relief accommodations and access to government support programs, and Scotiabank has a vast network of experienced professionals who have supported thousands of businesses throughout challenging periods. Our team offers specialized solutions to help you manage risks, capitalize on new opportunities, and plan for your future. We are here to guide and support you throughout your journey with strategies from recovery to growth.
Read the full Scotiabank 2021 Canadian Business Outlook Report here and view the report infographic here.
*Scotiabank survey of 310 and 305 Canadian businesses from February 18-22, 2021 and October 21-November 3, 2020 respectively, with annual revenue of $5 million-$500 million.