The coronavirus pandemic is not only is a health crisis but also an economic crisis. As your business emerges from lockdown, you are now planning how to rebuild your revenues back towards pre-pandemic status.

Your Recovery Team can develop your 3-month cash plan, find ways to reduce expenses, help you get the max forgiveness on loans, and find the best way to utilize your capital. Most importantly, create a profitable plan to move forward. How to focus on your cash flow and track every step of the journey to profitability?

About the blog author

 

  • Diligent executive project manager offering a proven record of success leading all phases of diverse technology projects; business transformation leader with more than 25 years of project management experience and as a financial executive, leading to being Assistant Deputy Commissioner of the City of Boston.
  • As a business strategist, planned and managed multimillion-dollar projects aligning business goals with technology solutions to drive process improvements, competitive advantage, and bottom-line gains; Collaborated with multiple customer entities to conceptualize and implement innovative manufacturing processes, cost-saving supplier metrics, and digital enablement road-maps.
  • An influential visionary with empowering and motivational leadership style that brings out the best in all project participants, both internal and client staffs; create alliances in efforts to achieve business goals, and quickly turns negative financials into positives.

My LinkedIn profile is at  https://www.linkedin.com/in/bjmartinez/.

Managing Your Cash Flow is Your First Priority

 

The first three months of your reopening is a crucial time for cash flow if you don’t have enough cash to carry you through this time. Here are some ways to better manage your cash flow to avoid a cash flow emergency.

  1. Be ready to grow
    • Project your cash, so you are where you want to be in a month, next quarter or a year from now.
    • Communicate with employees and customers with a confidence.
    • Grow as your customers return.
    • Identify opportunities to attract new customers/clients.
  2. Choose to motivate and show you care
    • Remember your recovery does not happen without your employees.
    • Signal to your employees and customers that they are valued by your company.
    • Make it clear to both that you want them back.
    • Ensure a safe return to work for your employees.
  3. Prioritize using cash
    • Give payroll your top priority, including benefits.
    • Negotiate with commitments/vendors for acceptance of deferred or partial payments.
    • Slash as much as you can. Just not essential functions.
    • Determine what is critical for the next 3 months.
  4. Turn everything into cash
    • Offer discounts to customers for prepayments.
    • Require payment on delivery for new customers.
    • Sell outdated inventory.
    • Pay expenses early for the discounts.
    • Apply/expand your line of credit, now.
    • Consider receivables factoring loans.
    • Sell non-essential assets not in use or leaseback equipment.

Conclusion

 

You will need to reset your goals, create your new cash flow forecasts, and revise your revenue projections. Your budget will dramatically change – cut out expenses that may not make sense for now.

Encourage your Recovery Team to stay focused on your cash and assist with decision-making. The coming months can be rocky.  Believe in your plan. Continue to adjust as you go forward. Communicate. Create. Assess. You will recover and win!

AccuComp Enterprises will provide expertise to strategically support your business and move your forward effectively toward your profitability.

Contact us at appointment@accucompenterprises.com

We are all in this together!