In such a singular moment in our global history, our thoughts continue to dwell on our fellow small business owners. As an entrepreneur, nimbleness and perseverance is in your DNA! We will be able to rise above this challenge, and we can anticipate a future beyond this pandemic, if we plan accordingly. As a prospective buyer, this could also be a good time to get your ducks in a row and be ready to make your move when things improve.
In the meantime,here is a survival guide for the right now, thanks to Transworld’s CEO, Andy Cagnetta and President, Bill Luce. At Transworld, we’re calling it the BRIDGE method.
- List all your fixed and variable costs and calculate a 6-month break-even analysis
- If you must temporarily close your business, place a premium on halting all possible expenses
- Leverage credit lines with programs like SBA disaster loans, if you expect a recovery beyond six months
- Calculate how long you can survive on your cash on-hand
- Cut all non-essential expenses
- Negotiate your lease, contracts with valued suppliers, and other obligations to get a reduction over the next 90 days
- If necessary, work with employees by offering temporary furlough, reduced hours and wages reminding them that they can apply for unemployment under the CARES Act.
- Make strategic decisions about ads and marketing without cutting it fully, if possible
- Focus solely on the stream of revenue that can make the most money over the next 90 days (i.e. delivery services)
- Use any temporary closures to actively work on your business so you are ready to go on Day One of the recovery
- Be completely honest with employees, creditors, customers, and vendors
- Don’t try and shoulder this mental and physical burden alone
- Be clear with your survival plan and recovery plan, people will have faith in you
- Implement your plan immediately and in a positive and constructive manner.
- Connect with your team and/or customers with tools like Zoom and Google Hangouts
- Stay motivated and active
- If you can, give back to the community - either financially or with your time (or blood, even!)
- Make plans now for how you’ll excel in the future so you can act quickly once the crisis is over
This free guide goes into more detail on each of these topics - to read more, click HERE.
In the meantime, if there’s any help we can provide, email our team by clicking HERE or call us directly at (801) 753-5655. We are here for you!