Despair. Panic. Uncertainty.
Each day, we talk with small business owners across the nation who are in distress as they’re being forced to limit or stop all in-person sales. Some are able to move sales efforts online. Some cannot. But everyone’s feeling the impact of the coronavirus and its toll on humankind, our economy and our spirits.
Now is not the time for fear or panic. It’s the time to problem-solve, plan and pivot.
How to Create a Financial Crisis Plan
Having taken my own business, Moxie Bookkeeping, through 9/11 in NYC and the 2008 recession, I have thoughts on how to make a financial crisis plan for your small business.
- Reduce cash outflow. Pause or cancel any no- or low-benefit expenses like non-essential subscriptions. Negotiate as many of your expenses as possible, and reduce your personal spending, too.
- Protect income. Reach out to clients now to see how you can continue to serve them. Think about expanding payment options or adding a quick-pay discount.
- Don’t take on debt to maintain “business as usual.” You ultimately control the money your business spends. Set a cost-conscience tone for your staff to remind them it’s not business as usual.
- Be very, very aware of your interest rates. Renegotiate current debt for better terms or try to consolidate or refinance.
- Get strategic and get advice. Have regular meetings with your financial coach or business advisor.
- Check in with your CPA on tax relief or tax credits available and ask to get regular updates. Create a new expense account in your bookkeeping software called “COVID response expenses” for things such as consulting and cleaning supplies not otherwise needed. This special coding will make it easier to recast the unusual spikes in expenses and to apply for reimbursement relief, if available.
- Evaluate your current products and services and streamline to provide only the most profitable. Reduce your inventory, too.
- Evaluate your client list. End any unproductive relationships, and continue to market to your ideal clients.
- If you don’t already have a tax savings account, set one up. Set aside taxes on the regular schedule of April 15 and June 15, even if you don’t pay to the government. Protect yourself from getting behind.
We Can Help You Manage This Financial Crisis
I encourage you to take swift and decisive action today. You’ll feel more in command and one smart, proactive step will lead to another. Also, facts fight fears, so work with the best data you have available.
If I can help you with any of these steps to manage this financial crisis, reach out! I’m a certified Profit First coach and a long-time advocate and mentor for small business owners.
I’m doing everything I can right now to help companies in need. One way is by hosting webinars (and joining others’ programs) on critical and emerging topics. So be sure you receive our small business tips and profit-building advice to see what’s coming next. You can also find event information on Moxie’s Facebook page and Eventbrite.
Keep your head up and your stuff together. We’ve done hard things before. Yes, these times are challenging us in new and unexpected ways. We will get through this together!