Some days it feels like we’re moving forward. Others, it feels like we’re still stuck in the COVID-19 rut.
The only way to find our way out is to take it one day — or even one micro-step — at a time. Because when we set our minds to problem-solving, thinking through the options we have before us, we can begin to feel a little better. The fact we’re doing something to improve our situation, even if it’s just some solo brainstorming or talking with a trusted confidant, is worth acknowledging. (BTW, if your circle of trust is too small these days, here’s who I think most everyone needs in their corner.)
I hope that by reading this advice from Tricia Taitt and me, you can be more hopeful about the future.
Shift Your Money Mindset
Shift your mind from scarcity and lack to abundance by starting your day listing five things you’re grateful for. Take everything that’s scaring you and make it an opportunity.
For example:
“Even if I’m behind on rent, I am grateful to have food and shelter today.”
“Though I’m fearful of the future, I can still make payroll this month.”
“Even though I’ve lost a client, I can use my new bandwidth to service another client.”
Keep a morning practice of some form of prayer, meditation or exercise to focus your mind and listen to the God or Goddess within you.
Everything may not be alright, but it’s up to you to say to yourself, Money will come to me and I will be okay.
Maintain Relationships
Now is a time for togetherness. Call your employees, vendors and clients. Check in on their current state and ask how you can be of service right now.
Communicate your plan to navigate this stage to each employee or independent contractor, and don’t assume you know the choices they’ll make. Ask if anyone can afford to be furloughed. Some people may welcome time away from the job.
Facts Fight Fear
Talk to your creditors — see if they will allow you to defer payment for 60 or 90 days.
Talk to your insurance carrier to vet your options.
For example, your business interruption insurance may cover your business in case of a pandemic. If you trigger disability insurance, ask if you can still apply for unemployment or be eligible for the government funding designed to cover your payroll.
Roadmap Your Cash
Cash is king, queen, knight and every nobility you can think of right now!
Manage your cash by building a financial roadmap to visualize your cash flow for the next 8–12 weeks.
Do not be afraid to call clients who have outstanding payments. You may not know their financial situation, but you can find out.
Remember, facts fight fear.
You can make payments seamless by:
– Requesting a form of payment that will not be charged for 60 or 75 days versus 30 days (no late fees).
– Splitting payments evenly across 2–3 months.
– Splitting payments so that 20–30% is paid now and 70% is deferred or paid over an agreed-upon period of time.
– Giving a 10–20% discount if the client pays all upfront.
– If the project happens in phases, pausing work and getting paid for what is already done.
If you want an alternative way to manage your income, expenses, and cash flow, try the Profit First method based on the book by Mike Michalowicz. (Interested in learning more? Download the first two chapters here.)
Plan with PPP
To stave off a mindset of scarcity and fear, we must rise to the occasion.
Start by using the PPP plan (no, not the government-funded PPP): Problem-solve. Pivot. Plan.
– Problem-solve. Look at the current state of your business. Decide what/whom to keep and what/who no longer serves you. A good method to complete this is a S.W.O.T analysis.
Ask yourself, What are my and my business’s strengths and weaknesses?
What could make life easier — should I rethink my business processes and put new systems in place?
Who are the MVPs I want to keep on my team?
Is it time to cut the clients that bring in the least but cost the most time?
– Pivot. If you look at the opportunities that COVID-19 presents, this may be the perfect time to pivot.
Offer complementary services/products or create a service for a niche industry.
Outsourced CFO Tricia M. Taitt certainly did. In the midst of this craziness, she launched the Power HER Financials initiative to educate, engage and empower women entrepreneurs around their business financials so they level up to seven figures.
– Plan … and be BOLD. Make room for what is right, right now. Visualize what life looks like post-COVID-19.
We will make it through this!
This article was originally published on The Art of Money Matters. Thanks for the collab opportunity, Tricia!
As founder of The Art of Money Matters, Tricia M. Taitt has spent the last 10 years helping small and mid-sized businesses improve their profitability, cash flow and operations in preparation for major growth or a sale.
She recently launched Power HER Financials, an initiative focused on educating, engaging and empowering women entrepreneurs and executives to grow from six to seven figures.