As the ‘Growth Architect’, I love helping people grow and scale their businesses. Right now, though, it is ALL about cash management solutions. The pandemic is creating enormous, unprecedented cash flow problems for businesses, large and small. And as a business owner, it is imperative to find a way to SURVIVE this crisis with your business intact.
You have to STAY THE COURSE, which is currently very trying and difficult as a business owner. The stories of survival are heartbreaking. I want to do what I can to help everyone survive this and, when it is possible, to be prepared to grow again as demand and revenue start to climb again.
I focused this article on what I hope are short term issues, knowing that if we don’t navigate these next 3-6 months successfully, we will all lose so much. Below are some insights and tips to survive this pandemic. I share the three most important things you must do in order to make it through the crisis and still have a business.
TIP 1: SPEND AS LITTLE CASH AS POSSIBLE
Your main priority during uncertain economic times should be to preserve cash. Call all of your vendors and negotiate different payment terms. Talk to them about ways to pay based on credit. Your goal should be to spend as little cash as possible, so try to keep your interest to a minimum while maintaining a good cash flow. You should ideally have enough cash to get you through the next three to six months.
TIP 2: FURLONG OR CUT HOURS
The second of my cash management solutions is to either furlong or cut the hours of your employees. It makes sense that you’d want to look out for your employees, but really, if you develop serious cash flow problems and your business fails, you won’t be able to help your people in the future.
TIP 3: STRONG MINDSET
Then there’s your mindset. Things are not going to be like this forever. There will be a recovery afterwards. Do what you can to preserve your cash so that you can weather these times and put yourself in the best possible position to move forward when this all passes.
The measures you take now will not last forever. Do what you can to avoid cash flow problems. By implementing some of these cash management solutions, you’ll be able to preserve your business and get going again when the recovery begins.
Owners, employees, vendors and customers will all be negatively impacted if businesses do not find a way to manage cash flow and employee issues to get through to better times. If the video above resonates with you, please like and share it so that other business owners will benefit from this knowledge.
Beate Chelette is The Growth Architect & Founder of The Women’s Code, a training company specialized in providing companies an ROI on Balanced Leadership. She has been named one of 50 must-follow women entrepreneurs by the Huffington Post. A first-generation immigrant who found herself $135,000 in debt as a single parent, she bootstrapped her passion for photography into a highly-successful global business, and eventually sold it to Bill Gates in a multimillion-dollar deal.
Beate works with business leaders and supports organizations by developing and providing training the training, tools, and expertise to create and maintain a balanced, equal and inclusive work environment that fosters creativity, employee engagement and corporate growth.
Recent clients include Merck, Women’s Legislative Caucus of California, Cal State University Dominguez Hills, Small Business Development Centers (SBDC), NFTE, CreativeLive, the Association of Corporate Growth, and TracyLocke.
Beate is the author of the #1 International Amazon Bestseller “Happy Woman Happy World – How to Go From Overwhelmed to Awesome” a book that corporate trainer and best-selling author Brian Tracy calls “a handbook for every woman who wants health, success and a fulfilling career.
To book Beate to speak or train please connect here.