We have all seen some rendition of the “Flatten the Curve” graphic. They are all talking about how all of us need to be proactive about social distancing, shutting down non essential activities etc. to keep the virus surge from impacting and overwhelming our health system.
Small Business owners need to use this same plan for flattening the cash expense curve for their business. Sales are in many cases slowing down and in some cases drying up. Each industry and service will happen at different levels and rates. In all cases the sales volume of recent months will not be the same moving forward. We are not sure for what period of time this will continue.
Today you need to flatten the curve of expenses. Just as with the virus plan, to keep your business from exceeding the surge point (available cash to expenses) you will need to stretch out expenses. Some recurring expenses you may have little immediate control over. You will need to consider conversations with landlord, vendors, suppliers etc. to allow for different terms and payments.
Many organizations are shutting down completely for two weeks while everyone else is shutting down. Others are changing shift allocation, implementing rotating crews so that the lower demand is countered with the proper sizing of staff and rotating them. This allows for the community of employees to share in the limited cash flow pool for a longer period of time. How you manage your cash during these choices is critical.
Now is not a time to have panic and uncertainty rule. Now is the time for small business to rise up and show the world how our ingenuity will overcome even the most significant obstacles.
Need a Promise Guide to talk to during these uncertain times? Call JKL Associates at (313) 527-7945 in Michigan or (407) 984-7246 in Florida to start a conversation about strategies to help your business navigate the coming changes.