Business owners need to quickly perform a cash flow triage and formulate a plan to get their business back in operation quickly once the crisis passes. Like a bad combination of the Twilight Zone and The Big Bang theory, this calls for multi-dimensional chess and all the information you can bring to bear.
The process starts with a 13-week cash flow analysis. If this is shocking, then you grasp the challenge that confronts you. You must understand the obligations that confront you for the next 13 weeks . What’s fixed? What’s manageable? And what’s discretionary? Like a bad algebra test you need to write it all down, show your work and explain your assumptions.
Now you need to consider how all of this will be funded:
These questions are just the tip of the iceberg and that there are many more questions to consider as you triage cash flow during this pandemic. Be sure to solicit the input of your key stakeholders and local Chambers of Commerce. Businesses need to actively manage their cash flow and liquidity needs as they struggle to stay the course.