It is impossible to name a business that has not been affected by the current crisis. During the period as changing as this, the need for consulting business services has probably become more relevant and even harder to get, at the same time. We had a discussion with Shalva Akhrakhadze, the managing partner of the Financial Laboratory, a consulting company about this topic.
- How would you briefly describe the current situation?
The whole world agrees that the situation which we have got for today is unprecedented and is caused by many factors. If we evaluate your question in economic terms, based on the scenarios published by the National Bank of Georgia, we can say that in the case of the basic scenario, our economy will reach the level of 2019 only at the end of 2021. However, in the case of the pessimistic scenario, which is unfortunately more likely to happen, by the end of 2022 our economy will still be reduced by 3 percent compared to the level of 2019, and we will be able to recover only in 2023.
- The current crisis has probably had negative effect on your business as well.
I think our consulting business belongs to the field, which is positively affected by crisis, financial consulting has become even more relevant and necessary, for almost every business. If until now a large part of the businesses were developed with an established flow. They may not have noticed the necessity of the consultants, now it is impossible not to see it. For many businesses, there are so big and so many changes necessary to be done at the same time, that high quality collaboration with a consulting company can be essential.
- How much did it take to adjust your products to the current situation?
We believe that every business has to think well about adapting their products and business models with the current situation. We maintain all the courses we have had so far, but also added some important products adapted to the new reality, such as financial restructuring. We believe that we will create very important value for many businesses, and we will make a significant contribution to them to deal with the crisis.
- What exactly does the financial restructuring service mean?
Like all of our other services, financial restructuring will be oriented on individual consumers. It may include changes in operations, processes, capital structure, and agreements with suppliers or existing customers. Together with you, we will be able to adjust your business to a new world reality.
However, if you want to cooperate with us, but your business is small or medium sized, and the cost of our services is making you step back, we can work on that. The Financial Laboratory has signed a memorandum with several major international financial institutions, and based on these agreements, if certain criteria are matched, it is possible that the cost of our services will be covered by a grant from these international financial institutions.
- Last but not list, what would be your general advice for businesses?
Our mean advice would be that no matter in what condition your business is right now, don’t give up, try to look for the new opportunities, evaluate more scenarios, and most importantly, think about all the important decisions in the long run.
The interview can also be found at the following link: Link.