In times of disruption, having plans in place that focus on revenue resilience and cost responsiveness are necessary to maintain the resilience of the P&L. Because the P&L is the lifeblood of an organization, it is crucial to be prepared in this arena.
Adjusting to dynamic revenue flows needs to be balanced with potential new cost requirements. Knowing the general direction for each in advance will enable swift action supported by P&L measures that are already in place. Consider the expenses that can be put on hold or decreased, such as new hiring and marketing spend. Also, it may be that deals in motion may be delayed and some existing customers may stop paying. If the disruption is large enough, you may need to consider completely pivoting your business model. Are you a brick and mortar retailer? It may be time to ramp up e-commerce or pick-up/takeout to be your primary means of selling.
