As we are in crisis, determining how you will survive and the financial health of your company is essential. Here are a couple of things to consider.
Listen to and Communicate with Your Clients
As this crisis continues, it is essential to communicate with your clients. You need to remind them why you are there, what benefits you deliver, and how they need you to survive. Everyone is going to eliminate whatever costs they deem unnecessary, and if you cannot show the value you are providing, you are gone.
Take a customer-centric view of this situation – how will you build trust, loyalty, and market share through and beyond this crisis? You want to develop that loyalty so that you protect your revenue streams during this crisis, and afterward, when many companies are trying to acquire your customers, they are loyal.
Also, listen for issues your clients are having so that (i) you can better serve them, and (ii) you are not caught with a significant value of receivables if they file for bankruptcy.
A Rolling 13 Week Cash Flow Model
Have a 13-week cash flow model for your business and also one for each of the scenarios that you are considering. This model must show:
-
Your cash balance. Know your cash balance is essential; companies don’t go bankrupt because they lose money, they go bankrupt because they run out of cash. While the government has said it is providing loans, assume that these take longer to get than expected. Also, model what happens if your revenues fall by 20%, 40%, 60%. Consider what happens if your clients start paying you in 120 days rather than 60. Build extreme downside scenarios – this has the potential to be a “100-year” event. At what point do you have cut expenses further to maintain a positive cash balance.
-
Bank covenants. As you model, these different scenarios look for points at which you breach your bank covenants. Banks may be looking to pull lines and loans, and if you violate the covenants, even though you are making payments, your loans might get called.
-
Delays in supplies. What happens if there are further supply chain disruptions. How will that affect your ability to supply products and get paid?
-
Talk to your bank and suppliers. Honest communication with your bank is essential. Banker hate surprises. See if you can change your loan to interest-only for a period. Will your landlord consider a lower rent for.a year with higher rents on the back end. This is a time to get creative.
-
Know what you are going to do when! Set aggressive ‘break glass’ cost actions triggered by more extreme revenue scenarios – This is about saving the company – no ideas are too radical.
Understanding What You Easily Scale Down/Up
Look at your expenses and operations. What can you quickly scale down now and scale up when appropriate? The ability to quickly turn off expenses will help during the liquidity crisis. As you consider these items, look at the forecasted demand for each item. If you have luxury goods or travel-related goods, demand may evaporate for some time, so shut down that product line, but consider a sale to clear inventory.
If you have a product or service for which there is an expected increase in demand, how can you scale that up? How can you deliver it more efficiently? What can you do differently? This requires some different thinking; consider getting out of your comfort zone.
Look for alternative supply chains for items that you need to meet demand. You cannot afford to fail to supply during this time, as that could be an event from which there is no recovery.
What Expenses Can Be Deferred
All CapEx is probably on that list unless it is essential to the business operations. Look at all operating expenses to see what is not essential. Go through all subscriptions; it is amazing at how many duplicates people have or how many no one uses. Cut everything non-essential. You can add it back if it is. As a Vistage member told one of his departments, “I want you to do what you are doing now with just 50% of the budget.”
Who Has To Go?
If people have to go, who goes? Seriously look at each employee and the value they contribute.
-
Can they cover multiple areas?
-
Are they essential in the rebound?
-
Are they pulling their weight now?
-
What is their attitude and added value?
On these bases, make the decision. It is hard, but if people have to go, make sure it is the right ones.
A Chance to ReInnovate
This is an opportunity to recreate. Looking at the way things are done and ask if we didn’t do it this way, how would we do it? Also, giving a department a smaller budget and telling them to do the same thing requires creative thinking. No idea is too extreme. I think of Apollo 13 at times like this when there was no choice, but they had to create something new to save the crew.
Good luck and hang in there, this too shall pass.
Copyright (c) 2020, Marc A. Borrelli
Great post. I am dealing with a few of these issues as well..
Francisk Skorina Gomel State University
Hi, Neat post. There is a problem with your site in internet explorer, may check this? IE still is the marketplace leader and a good portion of other people will omit your great writing due to this problem.
This post provides clear idea in favor of the new people of blogging, that really how to do blogging.
Appreciating the time and energy you put into your site and in depth information you present. It’s great to come across a blog every once in a while that isn’t the same unwanted rehashed material. Wonderful read! I’ve saved your site and I’m including your RSS feeds to my Google account.
Hey there! Do you know if they make any plugins to assist with
SEO? I’m trying to get my website to rank for some targeted keywords but I’m not seeing very good gains.
If you know of any please share. Many thanks! You can read similar art here: Choose your
escape room
Hey There. I found your blog the use of msn. This is a very well written article. I will be sure to bookmark it and come back to read more of your useful information. Thank you for the post. I will definitely comeback.
I’ve been browsing on-line more than 3 hours these days, yet I never found any attention-grabbing article like yours. It is beautiful price enough for me. Personally, if all webmasters and bloggers made just right content material as you did, the web will probably be a lot more helpful than ever before!
Thank you for the auspicious writeup. It if truth be told used to be a entertainment account it. Glance complicated to far added agreeable from you! By the way, how can we communicate?
Having read this I believed it was extremely enlightening. I appreciate you finding the time and effort to put this content together. I once again find myself spending way too much time both reading and commenting. But so what, it was still worth it.
After going over a few of the blog articles on your web site, I seriously appreciate your technique of writing a blog. I book-marked it to my bookmark site list and will be checking back soon. Take a look at my web site too and tell me what you think.
I think other website proprietors should take this internet site as an example , very clean and fantastic user genial style .
I am in fact thankful to the owner of this web site who has shared this wonderful post at here.
Hey there! Do you know if they make any plugins to assist with SEO?
I’m trying to get my website to rank for some targeted
keywords but I’m not seeing very good results. If
you know of any please share. Many thanks! I saw similar text
here: blogexpander.com
I’m extremely pleased to uncover this website. I want to to thank you for ones time due to this wonderful read!! I definitely appreciated every part of it and i also have you saved as a favorite to look at new things on your web site.
Excellent blog you’ve got here.. It’s difficult to find quality writing like yours these days. I really appreciate people like you! Take care!!
The very next time I read a blog, I hope that it does not fail me just as much as this particular one. After all, Yes, it was my choice to read, nonetheless I actually thought you’d have something useful to say. All I hear is a bunch of whining about something that you can fix if you were not too busy looking for attention.
The Exponential Curve of Fascist Unconstitutionality is accelerating straight up and cannot be slowed down it can only be beheaded, executed albeit politically rather than as Sultans do it.
Great site. Plenty of useful information here. I’m sending it to a few friends ans also sharing in delicious. And certainly, thanks for your sweat!
i think that satellite radio would also become popular in the years to come because of its great coverage area~
I��ve really enjoyed reading your content. You obviously know what you might be having a debate about! Your websites are simple to navigate too, I��ve bookmarked it inside favourites. . . . .
I was able to find good information from your blog posts.
I’m not sure exactly why but this web site is loading incredibly slow for me. Is anyone else having this issue or is it a problem on my end? I’ll check back later and see if the problem still exists.
I must thank you for the efforts you have put in writing this website. I’m hoping to see the same high-grade content by you in the future as well. In fact, your creative writing abilities has motivated me to get my own site now 😉
Thank you a lot for giving everyone an extraordinarily special possiblity to check tips from here.
Hiya, I am really glad I have found this info. Nowadays bloggers publish just about gossips and net and this is actually annoying. A good blog with interesting content, that is what I need. Thanks for keeping this web site, I’ll be visiting it. Do you do newsletters? Can not find it.
Wonderful blog! Do you have any helpful hints for aspiring writers? I’m planning to start my own site soon but I’m a little lost on everything. Would you propose starting with a free platform like WordPress or go for a paid option? There are so many choices out there that I’m totally confused .. Any ideas? Bless you!
I was very happy to uncover this page. I need to to thank you for your time for this particularly fantastic read!! I definitely savored every part of it and i also have you bookmarked to see new information on your website.
I like this site very much so much superb info .
This website was… how do I say it? Relevant!! Finally I’ve found something that helped me. Thanks.
An impressive share! I’ve just forwarded this onto a friend who has been doing a little research on this. And he in fact ordered me breakfast due to the fact that I found it for him… lol. So allow me to reword this…. Thanks for the meal!! But yeah, thanks for spending time to discuss this topic here on your internet site.
Good information. Lucky me I came across your blog by chance (stumbleupon). I have book-marked it for later.
Way cool! Some very valid points! I appreciate you writing this article and also the rest of the site is also really good.
I’m curious to find out what blog platform you have been working with? I’m experiencing some small security issues with my latest website and I’d like to find something more secure. Do you have any solutions?
After I originally left a comment I seem to have clicked the -Notify me when new comments are added- checkbox and from now on whenever a comment is added I receive 4 emails with the exact same comment. Perhaps there is a means you are able to remove me from that service? Thanks.
These kinds of Search marketing boxes normally realistic, healthy and balanced as a result receive just about every customer service necessary for some product. Link Building Services
It’s nearly impossible to find educated people for this topic, however, you sound like you know what you’re talking about! Thanks
I am not sure where you are getting your info, but great topic. I needs to spend some time learning more or understanding more. Thanks for great information I was looking for this info for my mission.
I couldn’t refrain from commenting. Perfectly written!
Te informacje są kluczowe dla każdego, kto prowadzi stronę internetową.
Cieszę się, że znalazłem blog, który tak dokładnie omawia SEO. Dzięki!
Wskazówki dotyczące bezpieczeństwa SEO są bezcenne. Dziękuję za ich udostępnienie!
Ten blog dał mi pewność, by zająć się SEO mojej strony.
Excellent article. I am going through some of these issues as well..
Ten post był bardzo pouczający na temat procesu SEO. Dzięki!
After I initially commented I appear to have clicked on the -Notify me when new comments are added- checkbox and now every time a comment is added I get four emails with the same comment. Is there an easy method you can remove me from that service? Cheers.
Your style is unique compared to other folks I have read stuff from. I appreciate you for posting when you have the opportunity, Guess I will just book mark this page.
I was able to find good information from your content.
Świetne wskazówki dotyczące znalezienia wiarygodnych usług SEO. Dzięki!
good post. Ne’er knew this, thankyou for letting me know.
Most of us have missed this main idea. Your blog posts are assisting me in exploring some required facts. You should continue your research.
I’ve been surfing on-line greater than three hours as of late, but I by no means found any interesting article like yours. It¡¦s pretty worth enough for me. In my opinion, if all website owners and bloggers made good content as you probably did, the internet can be much more useful than ever before.
There is noticeably big money comprehend this. I assume you have made specific nice points in features also.
I was just seeking this info for a while. After six hours of continuous Googleing, finally I got it in your site. I wonder what’s Google’s issue is! Thank you for the help!
you employ a great blog here! do you want to cook some invite posts on my blog?
Eventually, the author make an update for a blog. I used to be waiting anxiously for your own next update. I am hoping you will consider updating often so your readers may follow along. I do not have much joy in life today but your blog is one of them. I recognize life is busy but I really hope you will take the time to keep us modified on any progress.
you might have a fantastic weblog here! would you wish to make some invite posts on my weblog?
Sometimes, blogging is a bit tiresome specially if you need to update more topics.,`,”~
Thanks for another informative website. Where else could I get that type of information written in such a perfect way? I have a project that I’m just now working on, and I’ve been on the look out for such info.
What youre saying is completely true. It’s certainly an opinion I agree with.
Hi there! I know this is sort of off-topic but I had to ask. Does running a well-established blog such as yours take a lot of work? I am brand new to blogging however I do write in my diary on a daily basis. I’d like to start a blog so I can easily share my personal experience and views online. Please let me know if you have any kind of recommendations or tips for brand new aspiring bloggers. Appreciate it!
You ought to indulge in a contest for example of the best blogs on the internet. I most certainly will recommend this website!
i love to watch movies that made it to the box office, they are usually great movies with good story`
There are a few interesting points with time in the following paragraphs but I don’t know if these center to heart. There’s some validity but I most certainly will take hold opinion until I look into it further. Great post , thanks and then we want more! Put into FeedBurner likewise
It’s not my first time to pay a visit this site, i am visiting this website dailly and take pleasant information from here everyday.
i would say that Lion King is one of the best animated films that i have ever watched..
I must express my gratitude for your generosity for those who must have help with this important concern. Your very own dedication to passing the message along ended up being exceptionally functional and has specifically encouraged most people like me to arrive at their aims. This warm and friendly guidelines denotes this much to me and substantially more to my mates. Thanks a lot; from all of us.
Hello, Neat post. There’s a problem together with your web site in internet explorer, could test this… IE nonetheless is the market leader and a big section of people will omit your fantastic writing because of this problem.
I appreciate, cause I found exactly what I was looking for. You’ve ended my four day long hunt! God Bless you man. Have a nice day. Bye
??? ??? ???? ?????? ???????, ?? ??? ????? ???? ?????? ???? ?????? ?????? ???? ???? ?????? ?????? ??? ?? ???? ????? .
This text is invaluable. How can I find out more?
Мойка самообслуживания под ключ обеспечивает комфорт для клиентов и стабильную прибыль для владельца. Присоединяйтесь к успешным предпринимателям!
Инвестиции в строительство автомоеок под ключ обещают быструю окупаемость благодаря оптимальной цепочке поставок оборудования и расходных материалов, а также продуманной системе управления бизнесом.
Франшиза автомойки – это возможность стать частью успешной сети с готовым бизнес-планом и маркетинговой поддержкой на всех этапах работы.
Ищете надежного партнера для строительства автомойки? Мы предложим индивидуальные решения и полное сопровождение проекта от начала до конца.
You’ve addressed every aspect comprehensively.7300만원 대출
Автомойка под ключ – это ваш легкий старт в автосервисном бизнесе. Не требуется прежний опыт – мы сопровождаем вас на каждом шагу.
Thank you for your thought-provoking post.사업자 대출
Строительство автомойки под ключ – неутомимая забота и полный контроль на каждом этапе, от проекта до открытия. Ваш бизнес в надежных руках!
What’s up it’s me, I am also visiting this site daily, this site is truly good and the people are truly sharing good thoughts.
Howdy! I know this is kinda off topic however , I’d figured I’d ask. Would you be interested in exchanging links or maybe guest writing a blog article or vice-versa? My site addresses a lot of the same subjects as yours and I believe we could greatly benefit from each other. If you might be interested feel free to send me an e-mail. I look forward to hearing from you! Wonderful blog by the way!
I’m sharing this with my friends right away.구글 검색엔진최적화
Undeniably imagine that that you said. Your favourite justification appeared to be at the internet the simplest thing to consider of. I say to you, I definitely get annoyed even as other people think about issues that they just don’t realize about. You controlled to hit the nail upon the top as smartly defined out the entire thing without having side-effects , other people could take a signal. Will probably be back to get more. Thanks
*Hello! I just would like to give a huge thumbs up for the great info you have here on this post. I will be coming back to your blog for more soon.
Howdy! I’m at work surfing around your blog from my new iphone! Just wanted to say I love reading through your blog and look forward to all your posts! Carry on the outstanding work!
Франшиза автомойки – шанс начать бизнес с минимальными рисками и максимальной поддержкой. Давайте расти вместе и достигнем успеха.
Франшиза автомойки – отличное решение для начинающих бизнесменов. Мы предлагаем проверенную модель и постоянную поддержку.
Строительство автомойки под ключ – это наш профиль! Обещаем качество, соблюдение сроков и построение устойчивого бизнеса от идеи до открытия.
Aw, this was an extremely nice post. Spending some time and actual effort to make a very good article… but what can I say… I procrastinate a lot and never manage to get anything done.
Автомойка самообслуживания под ключ – наше предложение для тех, кто ценит эффективность и инновации. С нашей помощью вы войдете в рынок быстро и без проблем.
I really like it when folks come together and share ideas. Great website, stick with it!
Заказывая автомойку под ключ, вы экономите время и деньги. Наши специалисты возьмут на себя все этапы работ, от разработки до ввода объекта в эксплуатацию.
“Франшиза автомойки” от нас подразумевает полную поддержку и совместные усилия. Мы тесно взаимодействуем с каждым из наших партнеров.
I blog often and I truly thank you for your content. This article has really peaked my interest. I am going to bookmark your site and keep checking for new details about once per week. I subscribed to your RSS feed too.
Ищете надежного партнера для строительства автомойки? У нас есть качественные решения под ключ, чтобы сделать ваш проект прибыльным.
Way cool! Some very valid points! I appreciate you penning this post and also the rest of the site is really good.
Can I just say what a comfort to uncover a person that truly understands what they are talking about online. You definitely understand how to bring an issue to light and make it important. More and more people have to read this and understand this side of the story. I was surprised that you are not more popular since you most certainly have the gift.
Way cool! Some very valid points! I appreciate you penning this write-up and the rest of the site is really good.
Hi there, I believe your website may be having browser compatibility issues. When I take a look at your blog in Safari, it looks fine however, if opening in IE, it’s got some overlapping issues. I just wanted to give you a quick heads up! Aside from that, excellent website!
I blog quite often and I truly appreciate your content. This article has really peaked my interest. I am going to take a note of your website and keep checking for new information about once per week. I subscribed to your Feed as well.
You need to be a part of a contest for one of the finest blogs on the web. I am going to recommend this website!
You are so cool! I do not think I have read a single thing like this before. So good to find somebody with a few original thoughts on this subject matter. Seriously.. many thanks for starting this up. This web site is one thing that is needed on the internet, someone with a little originality.
Thank you for your sharing. I am worried that I lack creative ideas. It is your article that makes me full of hope. Thank you. But, I have a question, can you help me?
Your ideas have opened up new possibilities for me.Google Genius
I seriously love your website.. Excellent colors & theme. Did you build this website yourself? Please reply back as I’m hoping to create my own site and want to know where you got this from or what the theme is called. Many thanks.
Greetings! Very useful advice in this particular post! It is the little changes that produce the largest changes. Many thanks for sharing!
You have made some good points there. I checked on the web to find out more about the issue and found most people will go along with your views on this website.
After exploring a number of the blog posts on your web site, I truly appreciate your way of writing a blog. I added it to my bookmark site list and will be checking back soon. Please check out my website as well and tell me how you feel.
I was able to find good advice from your blog articles.
Hi! I could have sworn I’ve visited this blog before but after looking at some of the posts I realized it’s new to me. Anyhow, I’m definitely happy I came across it and I’ll be book-marking it and checking back frequently.
After exploring a handful of the blog posts on your blog, I honestly appreciate your technique of writing a blog. I saved it to my bookmark website list and will be checking back in the near future. Take a look at my web site too and tell me what you think.
Excellent write-up. I absolutely love this site. Thanks!
After I originally left a comment I appear to have clicked on the -Notify me when new comments are added- checkbox and from now on each time a comment is added I get four emails with the same comment. Perhaps there is an easy method you are able to remove me from that service? Thanks.
You should take part in a contest for one of the finest sites on the internet. I will highly recommend this blog!
An impressive share! I have just forwarded this onto a colleague who had been conducting a little homework on this. And he actually ordered me lunch simply because I discovered it for him… lol. So allow me to reword this…. Thank YOU for the meal!! But yeah, thanx for spending the time to talk about this matter here on your blog.
Excellent article! We are linking to this great post on our site. Keep up the good writing.
I seriously love your blog.. Excellent colors & theme. Did you develop this website yourself? Please reply back as I’m looking to create my very own blog and want to learn where you got this from or what the theme is called. Thanks!
I was able to find good info from your articles.
I quite like looking through an article that will make men and women think. Also, thank you for allowing for me to comment.
This web site definitely has all of the info I wanted about this subject and didn’t know who to ask.
I used to be able to find good info from your articles.
Aw, this was an incredibly nice post. Spending some time and actual effort to make a superb article… but what can I say… I procrastinate a lot and never manage to get anything done.
Right here is the right site for anybody who hopes to understand this topic. You understand a whole lot its almost tough to argue with you (not that I personally will need to…HaHa). You certainly put a fresh spin on a subject that has been discussed for years. Great stuff, just wonderful.
I could not refrain from commenting. Perfectly written!
I needed to thank you for this great read!! I certainly enjoyed every little bit of it. I have you bookmarked to look at new things you post…
Greetings! Very helpful advice in this particular article! It is the little changes that produce the most significant changes. Many thanks for sharing!
I quite like looking through a post that can make people think. Also, thank you for allowing me to comment.
Howdy! This post could not be written much better! Looking at this post reminds me of my previous roommate! He continually kept preaching about this. I most certainly will send this article to him. Pretty sure he’ll have a great read. Many thanks for sharing!
After I initially left a comment I seem to have clicked on the -Notify me when new comments are added- checkbox and now each time a comment is added I recieve four emails with the same comment. Perhaps there is a way you can remove me from that service? Thank you.