The coronavirus has likely had a significant impact on business operations. Sales may have dipped significantly or business owners and workers may be under stay-at-home orders. If your business is in such a situation, consultant Michael Stone shares several steps that can benefit business and family on Markup and Profit.
Know the Nut to Crack
The nut you need to crack is an old expression that refers to the funds you need each month to survive. Starting with your household, how much do you need to keep a roof over your head and food on the table? This isn’t the same as your budget. Figure out the necessities; how much do you need to cover food, housing, utilities, and medical expenses?
Now look at your business. How much do you need to bring in every month to keep your doors open? If you don’t have any revenue, or if revenue is drastically reduced, what do you need to keep your business alive until we get past this spell?
Negotiate Your Debt
Do you have any debt? If you have a line of credit, a mortgage, or supplier or credit card debt that you’re not sure you can pay, contact them now. They might be willing to defer payments and even interest for a period of time, but you won’t know unless you ask. It’s better to ask and show that you care about the debt than to skip payments and pretend it doesn’t exist. It won’t go away.
Now, if you owe money to a subcontractor for work they’ve already performed, that’s different. When you owe someone who is down the food chain from you, you’re putting their business and their family at risk. They don’t have the deep pockets a bank or even a supplier might have to get by.
Plan, Revise, Repeat
I’m not talking about year-end planning. I’m talking about things you can do today, this week, next week, maybe even next month. Sit down and list at least five things you can do for your business. Then do what you can. Every day, evaluate the list and adjust as needed. Cross off what you completed, and set aside what you discovered can’t be done right now. Add items that came to you over the past day, and adjust based on whatever circumstances have changed. This exercise, both the planning and the doing, will help keep you positive, focused and hopeful.
