I know that things seem scary and uncertain right now, and that really sucks. I feel it too, but I know that this one exercise will really help you to feel more control, empowerment, and hope during this time.
Figure Out Your Business Forecast
First and foremost, stay safe and healthy. Second, let’s re-forecast. I have worked with hundreds of business owners over the past month who had initially assumed that there was no point in forecasting. That is hogwash.
First of all, you need to get very clear on how much money will be flowing into your business from accounts receivable, alternate sources of revenue, or existing revenues, so that you can plan for the money coming in. Do not give up on revenue! In EVERY case we have found ways for businesses to STILL SERVE and make money through this global crisis!
Make the Changes You Need To Make
Whether you switch to online sales, contactless pickup/delivery, online instructing, or start a completely new business (“aseptic contactless delivery” anyone?), you CAN earn money right now. You just need to get creative and retake control of your business. Watching some of our past Zoom calls (with other experts and entrepreneurs) brainstorming could help—please ask if you’d like the recordings! There are some VERY cool things being sold right now!
Here’s a great article with some ideas for businesses to adapt to new ways of doing things.
A New York hotel laundry business looks at different ways to use their existing equipment when the hotels are all shut down:
A Seattle diner focuses on one item from their menu and delivers it to their customers:
Control Your Expenses
Next, you need to recalculate your expenses, because once you have called and asked for all of the help you can get, you will be paying MUCH LESS in expenses. Examples of expenses you can delete or defer may include rent, leases, utilities, loan payments, wages, remittances, taxes, software, and more.
Go through every line of your numbers, and see what you can get relief or deferment on, and what you should just plain cancel because you don’t need it. Take control of your expenses and get that power back!
I have done this exercise with dozens of business owners and every single time they found a way to stay cash-flow positive through these months. It may not be much, but they are definitely not going under.
Look Into Loans
Finally, you’ll be left with your net cash for the month. Do you need to borrow? How much? Before you resign to accepting an amount you are not happy with, REALLY push yourself to get creative about bringing in revenue. I cannot stress enough that people are doing it all over the place, in so many awesome ways. You can too!
It’s more important now than ever for you to forecast cash flow so that you know how much money you may need to borrow. Between the government loans/wage subsidy, Business Development Bank of Canada (BDC), and what your bank is able to do for you, you could be receiving thousands and thousands of dollars, IF you need it, but you won’t know until you do your financial forecasting. Since things are changing so fast, you can even do this weekly if you like.
Here is the most relevant and up to date link for employer information during this time: https://www.alberta.ca/covid-19-support-for-employers.aspx
If you are optimistic about the future, and you need help re-forecasting or brainstorming creative ideas, please join our live Zoom calls (free) always posted on the top of our home page at tmhbusiness.com, or request a free strategy session with me.
If you need more help on how to be a true leader during a crisis, contact TMH Business Coaching and Consulting today for a confidential, free, no-obligation consultation to propel you forward. Also, please feel free to add yourself to our weekly coaching tips email!