The current coronavirus pandemic is exacting a toll on all businesses large and small.  Smaller businesses are dis-proportionately affected by the economic shutdown and the stay-at-home orders.

Small business owners and individuals need to pare back expenses.  The following process prioritizes your cash outflows:

Start by gathering all your bills, invoices, and any other cash outflow documents. Now label each item as either; C-Critical, N-Nice-to-Have, or W-Want. 

Review your list to ensure everything marked as Critical – really is.  The N-Nice-to-Have category includes items like subscriptions, eating out/carryout or delivery, new clothes, impulsive online shopping etc. By eliminating non-critical spending you retain cash while simultaneously extending your liquidity.

Next eliminate ALL the N’s and W’s from your list! 

Congratulations, you just reduced unnecessary spending!  One more thing – ADD back in one W. After all, moderation in everything, even austerity!