Hard to believe how much has changed in the last few months! The business environment and landscape are changing.
I have outlined the importance of three areas which are critical to be focusing on now for your business. At the bottom of this email, I have 2 new resources to help you manage the Business through these challenging times.
- Communication – now more than ever communication is paramount. Having a consistent message for your employees, suppliers and customers is critical. Take this opportunity to craft your message, keep it clear and concise. Let each know when they can expect to hear again from you, with updates as applicable. For employees which are directly in contact with suppliers and/or customers ensure they are in touch and communicating the same message. Keep your messages current. Please ensure you are keeping your communication lines open and up to date. Need some help, don’t hesitate to reach out.
- Alternate business models – are there other options and channels to reach customers and clients? How can you make it easier for your customers and clients to continue to do business with you? Now is the time to be thinking of marketing initiatives to stay engaged with your clients and prospects. Social media is a great way to stay in touch. If you are online more than ever, remember your clients and prospects are probably too. Staying positive and inspiring in your communication. More to come here and I encourage you to think about new ways to do business that will put you and your business ahead and ready to go.
- Plan – map out best case and worse case scenarios for your business, including cash flow. Planning for cash flow because of the potential impact Covid-19 may have on your business is important. Do you expect to maintain previous Covid-19 business levels? What is the optimum business structure you need to maintain? Do you have working remote options, or do you need to consider reducing hours and/or layoffs? All of these are difficult decisions. Whatever you decide and plan to implement, consider what communication will be needed. At this point you probably have made some staffing decisions. Whether you are an essential business or not – this is not easy. More than ever, we need to stay agile. The BDC video I have included the link below for, emphasizes the importance of continuity planning. More to come here as well!
So now what? Two things:
Firstly: BDC released a 30-minute video, first part goes over the current global economic state. Good to listen to for some context. After the initial economic outlook, the focus is on continuity planning (starting with safety, communication, resilience and cash flow) to be being ready to weather the current situation and to be ready for recovery (we will recover!). The video mentions how cash flow is like GPS for your business, and provides some great suggestions on how to better manage it.
Here is the link: BDC Video March 25, 2020:
Secondly: If you haven’t got an updated cash flow forecast for your business NOW is the time to get it done. When you know what you need to bring in, and proactively work on it, you will feel more in control, and can address potential shortfalls. Ignorance is not bliss here folks, hope is not a plan. And should you need to cover off potential shortfalls, conversations and support from your bankers can go much smoother if you can show them a cash flow forecast and explain what you need and when.
I have also included a mini video overview of how to for Cash Flow video: https://drive.google.com/open?id=1_zmeQZcuh-BzO-wCmrrXnB6ZxZ6RI8hQ
Take a listen and pleased to send you the excel file should you wish to use the one I refer to in the video. Just send me an email at firstname.lastname@example.org Subject: Cash Flow template and I will send it over, and you can receive a complementary half hour consultation to discuss your cash flow should want to take advantage of that.
The BDC video from about the 18th minute mark goes through some excellent suggestions on how to prioritize and monitor your cash in and out. Please ensure you are following best practices to manage your cash in and out if you aren’t already. I am here to help, so please don’t hesitate to reach out.
Best and please be safe and healthy!