For those business owners, the best advice we can give at the moment is this: you need to get on top of your numbers.
If this is something you’re not comfortable with, follow these steps to get started.
Put together a cashflow forecast for the next 4 weeks.
That means, estimating how much cash you think you’ll be getting in each week, for the next 4 weeks.
Next, estimate how much you think you’ll be paying out each week for the next 4 weeks.
Do this for each week, not just the total for the 4 weeks all thrown in together.
That means, Week 1: Money In, less Money Out, how much is left.
Then, Week 2: Money In, less Money Out, how much is left, etc.
Next, see what it looks like (i.e how bad is it?)
For most people, their biggest concern is getting enough cash in to cover the bills.
So, make a list of all the bills you owe, including the Tax Office and Super.
List them on one page. If using software, make sure it’s up to date then review the Total Payables report.
Then, contact all of your suppliers, including your banks and landlord.
Communicate with them. Let them know what’s going on. If things are bad, tell them. Or if you can see it turning around, let them know that too.
Think carefully and set a plan.
Remember, communication is key in these tough times. The temptation is to bury your head in the sand and pretend things aren’t that bad.
This is not a good strategy.
Be brave and be bold.
Be strong and look your business straight in the eyes. See it for what it is.
Then think carefully about your next step. Set that plan and put it into action.
Let me know if you need a hand, or want someone to hold you accountable to the plan you have set.
Peter