1. Keep Financials Up-to-date

Understanding financials and keeping them up to date will show you if your business is in trouble. Understand 2-4 key drivers of profitability. Focus on cash and near cash items, speed up conversion to cash and slow down any outflow if possible.

2. Create Living Forecast for the Next Twelve Months 

Create a living forecast by using last years info as a starting point and adjust for the future as you understand the current changing situation. 

3. Prepare for Alternative Scenarios

Because your forecast for the next twelve months will most likely be wrong, create a worst-case, most-likely case and best-case. This will allow you to identify 2-5 things you would need to do to align your new costs to these alternative outcomes.

4. Find Cash 

Most importantly, you need cash to survive. Here are some immediate ideas.
• Look into federal and state coronavirus help
• Extend terms with suppliers
• Explore bridge loans from lenders
• Temporarily cut payroll for some or all employees
• Reduce ad spend
• Discuss deferring rent

5. Use Breakthrough Thinking

Remember customer demand is probably there, just in a different form.

Example While big banks turn down SBA loans, small banks add them as new customers.

Example Restaurants are offering discounts and order taking businesses are turning to web solutions that permanently lower their cost per order.