Steps to Safe Money And Your Business

Posted on by Jon Arentz

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!

Positive Steps During the CoronaVirus Down Time

Posted on by Jon Arentz

Now is the time to take some positive actions!

The Corona virus outback has shuttered many small businesses in cities across America and across the world.  We as small business owners are doing our part to help limit the spread of this virus by voluntarily closing shop, furloughing our employees and self isolating. If the projections of the CDC and other experts are correct, we may have as many as 8 weeks of down time.

There is a silver lining to this otherwise very dark which hovers us all.  You have time, the one very precious commodity that seems to elude us all. Time to work, in the words of Michael Gerber and others, “On your business not IN your business”!

So, let’s get started.  Here is a short list of things you can do now to work ON your business.

  1. Dust off your Business Plan.

When was the last time you updated your Business Plan?  You do have one don’t you? Even a one woman operation needs a plan. There are lots of online resources to guide you in developing a business plan or updating the one you have.

  1. Create a Strategic Plan.

What is a Strategic Plan? A strategic plan is the strategy you will use to achieve a goal. If you want to increase customer retention for example, how will you do this? What steps will you take?  Or what if you want to reduce production costs, what steps can be taken to reduce costs or increase productivity?  

  1. SWOT Analysis.

SWOT stands for: Strengths, Weaknesses, Opportunities and Threats. List your organization’s strengths, what you do well. Now list your organization’s weaknesses, what you need to improve upon. Opportunities are favorable external factors that can give you a competitive advantage.  Threats are both internal and external factors that can have a negative impact on a business. 

  1. Your Migraine.

I don’t mean a migraine headache! What is your biggest source of pain in your business? What would happen if you can fix the issue?  What would happen if you can’t? Now is the time to take a deep dive into your most pressing issue and go to work to fix it.

  1. Stay Connected.

Stay in touch with family and friends but also your customers and suppliers. Staying in touch shows you care about the relationship you’ve built with your customers and suppliers. Continue to build on this relationship, offer help if appropriate. We all want to do business with those we trust, and trust builds relationships.