Your number to focus on will likely revolve around generating cash. The question is, how do we generate cash when our sales revenue has been dramatically reduced? We suggest getting everyone in your company focused on figuring out how to generate the cash you need to survive. Here are some areas to look at:
- Sales: Your primary sales funnel may have temporarily dried up. Brainstorm with your team new sales opportunities. Are there other businesses or some of your customers that need help due to the current crisis? Can you fill any of those needs? Do you have opportunities you never pursued as you were too busy? Do those opportunities still exist? Are there other needs that you have the talent and resources to meet? How can you pivot to meet these needs? How soon can these begin to generate sales?
- Accounts Receivable: Stay on top of your accounts receivable. Talk to your customers, see if they can accelerate any payments, find out what they need, get further insight into their order board, find out what they are going to need as we get on the other side of this crisis. Prepare to meet that need once the crisis passes.
- Scrub Expenses Line by Line: Complete line by line analysis of your expenses in order to eliminate anything that is non critical and/or can be reduced. Assign your employees expense lines and ask them to determine how to reduce or eliminate those expenses. Look at expense reduction programs that could help you reduce expenses.
- Suppliers and Vendors: Go to them, be upfront with them about your situation, ask for their help in determining what can be done to reduce expenses. Let them know what you see for future orders, talk to them about the new revenue ideas you have and how they can help. Is there anything that can be done with deferred or reduced payments?
- State Aid: Investigate and stay up with any state aid that may be available to help you through this crisis. Talk to your local Chamber of Commerce and find out what local business groups and associations may be doing to help businesses. Make sure you are doing what is necessary to tap into any programs. Calculate how soon you can get the benefits.
- Federal Aid: This is changing on an hour by hour basis. Have someone assigned to keep up with the changes, calculating potential benefits, and make sure you are doing what is necessary to tap into these programs. Work to maximize the benefit, and minimize time lag to receive benefits.
- Tax Incentive and Expense Reduction Initiatives. There are a number of tax incentive programs and expense reduction services that can put money back into your business quickly. Contact us as this is an area we can help you.
- Loans: Talk to your local bank, SBA, and contact us. See if you can access additional funding. Look at how much debt you could and are willing to take on to survive. We have access to over 100 funding sources that could help you.
Be upfront and communicate with your customers, venders, suppliers, bank, and any other stakeholders on your situation. Above all communicate and get your employees involved. They will have great ideas. They also understand the situation and are scared and unsure of how to provide for their families. Work to do everything you can to retain your employees looking at all options to avoid layoffs. When they know what you need, they can help. When you don’t communicate with them, they will assume the worst.
Contact us at ray@leadengageagency.com or call us at (586) 747-6803. We stand ready to help you in surviving this crisis. We look forward to being able to help you access these programs and brainstorm additional ideas so you can make it through this crisis.
In difficult times we need to pull together to survive and be able to thrive.
