The CoVid Chronicles 3: The Long Road Back
April 8, 2020
No one pretends to know how long our altered state will last. For many, each day sees income dry up, bills accumulate and a growing sense of helplessness. It’s cliché but true, “when the going gets tough, the tough get going”.
There is no better example than businesses that have developed a system of order and pre-pay online and pick up at the curb. Big box stores like Canadian Tire, Home Depot and Staples already had systems in place before the stay-home order was issued. Smaller businesses have adapted the concept, using special email accounts and re-deploying staff. Even small, independent booksellers are offering home delivery. These businesses will do whatever it takes to keep the lights on and maintain contact with their customers.
If your business has been idled during the CoVid crisis, now is the best time to buckle down and plan for the recovery. If your business involves buying and selling merchandise along with accounts payable and receivable, your sales and inventory projections are critical, as is your cash flow forecast.
Review your business plan for 2020. Revise your projections for the balance of the year and for all of 2021. Build a spreadsheet model projecting best and worst case scenarios. Pay particular attention to your cash flow forecast. If you are going to require extra cash to survive, it’s better to face that challenge now.
Check out our business toolkit (https://www.small-business-consulting.ca/business-articles-blog) for guidance and sample spreadsheets that show you how to build a sales forecast, merchandise budget, operating budget and cash flow forecast.