We get it. If you’re a brand licensing professional, you’ve probably had to adapt to new and unprecedented changes to the way you do business over the last few weeks. In addition to navigating the global health crisis, you’ve probably been managing your licensing operations from your dining room table. Through all of this, the financial health of your programs is undoubtedly ever-present in your mind.
Manufacturing and retail delays and long term economic consequences of postponed or canceled events are certainly causes for concern. To that end, here is a guide to help you put your mind at ease (about finances at least) and help you steer your business during these uncertain times.
From our team to yours, five tips on handling licensing finances amidst the global COVID-19 crisis.
1. Communicate with your internal team and external partners
Now more than ever, communication is key. Align with your licensing partners to evaluate how they are handling their operations. If economic slows have impacted their ability to carry out the terms of your agreement, the effects can ripple across your business. Gather as much information as possible including financial losses and foreseeable impediments and use the information you gather to rethink your strategies and business plans as required.
2. Keep a close eye on operating expenses
Now is the time to go through your operating expenses with a fine-toothed comb to identify areas to cut costs. Miscellaneous expenses, forgotten subscriptions, and hidden fees all add up. Trim fat where you can.
3. Use an efficient system to track and analyze business performance
Identify tools that will help you and your teams centralize, track and analyze your performance all in one place. Modern digital tools make it possible to look at your data in real-time using dashboards, spot bottlenecks ahead of time and plan for the future as well as communicate in-app to ensure all of your team members are on the same page.
4. Have invoicing notifications to send out invoices well ahead of the due date
If you’ve ever forgotten to send an invoice or are still waiting to be paid on one, you’re not alone. To get ahead of the changing economic tide, send upcoming invoices right away and try adopting a digital solution that includes automated reminders and alerts for future invoices, so you’re never wondering when and if you’ll be paid again.
5. Do a thorough analysis of potential partners to avoid unreliable business deal
If you’re in the market for new partners, conduct a thorough background check including analyzing prior success at market, speed to market, and credit. In addition to formal background checks, ask colleagues and partners about their experiences working with prospective partners. Taking on a partner who can put your business at risk and lower the chances of you seeing the return you need to withstand the current economic conditions can be irreparable.
The Flowhaven team sends best wishes and support to the entire licensing community. We hope that everyone stays safe, weathers the storm and comes out stronger at the end.
Looking for a better way to manage your licensing operations from home? Book a Flowhaven demo here.