If you are reading this blog, I hope that you and your family and your business are all doing well. In these times of great uncertainty, that most all of us have never experienced, it is very challenging to stay positive and focused on what you can control.
A recent message from a colleague, Lloyd Bell, suggested for us to remind our clients of the short action list regarding these unprecedented times.
And #1 on the list: hoard cash. Which makes me think of all the stores that are just now starting to fill up with the toilet paper from what was the gold rush of March 2020. Let’s just agree, that hoarding cash – makes more sense to help fund the growth that is bound to occur when the conditions improve.
#2: Monitor your cash flow. Consider mapping out your cash forecast. What do you need for the next 4, 7, 13 weeks?
#3: Collect your receivables! If everyone takes the hoarding cash suggestion seriously, your customers are likely to also extend the payment terms. Stay on top of this, call, plan, communicate – it's very important to ensure that this asset continues to turn into cash.
#4: Stay in touch with your bank, especially if you have a good relationship. Yes, they may have just helped you apply for the Paycheck Protection Program (PPP) which is part of the CARES Act – but things could change in another month if business starts to tighten.
Contact us and let us help.