Even as some businesses are opening up right now, COVID-19 is still the top story on the news and on everyone’s mind. For your business to survive you need to be on top of things. Below there are 5 basic things that may help you survive and perhaps even thrive.
- Financial Statements. It’s important to keep these up to date so that you have a clear picture of your finances. This includes the business:
• Current cash flow
- Generate a forecast. Project your numbers by the month for the next 12 months. Although there’s no crystal ball, this will give you an idea of what your expenses will look like in 2 months or a year.
- Create a 3 case scenario. After you have your baseline forecast, build a:
• Best case.
• Worst case.
• More likely case.
Once you’ve created the 3 scenarios, make a plan of action so that you can adjust costs for each case.
- Communication. It’s vital that you communicate with your creditors, employees, and suppliers frequently. If they don’t know your plan they may draw their own incorrect conclusion about the direction your business will take. Whether it’s good or bad news, communication is key.
- Advisors. As a business, you will need to keep in touch with your all your advisors such as your:
These advisors can help analyze your business and offer insight to help your business survive the pandemic. They can share perspectives on recently enacted tax laws that target small businesses as well as small business loans available. Even with good planning, some businesses may not make it after the pandemic while others will come out stronger than ever.
At Summit CPA we offer multiple resources to assist and help your business grow. If you’re ready to get an edge on your competitors? Contact our office at (866) 497-9761 to schedule an appointment with our advisors.