Financial Thrive to Survive Plan – Canadian Edition

Financial Survive to Thrive Plan – Canada

1. Take a Systematic View of your business

  • Negative or Positive? What is your mindset?
  • Figure out the new “normal”
    • Economy will struggle post COVID-19 (6-12-18 months)
  • Review your business and clients. What % decrease in Sales are you expecting for 2020? Which option are you finding yourselves in?
    • Maintain Price and volume
    • Maintain price & decrease volume
    • Decrease price & maintain volume
    • Decrease price & decrease volume
  • Recession Proof your Business
    • Focus on Service type business
    • Get “real close” to your customers! Know what value you bring to them!
    • Communication with clients and staff – be transparent and build connection

2. Cut Costs

  • Look line by line by supplier – tedious, but effective
    • Ask staff where you are bleeding money
    • Nice to have vs Must have? Make hard choices
    • Credit cards – recurring monthly charges & subscriptions (Spotify, Audible, etc.)
    • Lay off Staff vs “Carrying” staff? Don’t deplete your cash reserves while you are not working!
    • Contact Insurance Company as lower sales = lower premiums

3. Track Cash Flow

  • Daily, Weekly, Monthly
    • Ensure you understand your Profit & Loss Statement and Balance Sheet and where your company actual is position financially! Review your ratios

4. Creative Ways of Improving cash Flow

  • Access Eligible Grants
    • Summer student – 100% Wage subsidy
    • $40,000 Business Loan
    • 10% Wage Subsidy – up to $25,000 per employer
    • 75% Wage subsidy
  • Deferrals of Fixed Payments
    • Reopen lease and finance to change terms
  • Negotiate terms with Suppliers
  • Ensure deposit structure is enforced for Landscape Projects
  • Request clients to pay for 100% of contract upfront (offer discount)
  • Cut fixed costs

5. Update your Budgets based on % decrease (visit section 1, bullet 3)

  • Plan for recession (less sales)
  • Realize that you will have a shorter season in 2020
  • Utilize LMN for Contractors

6. New Norm – Working “ON” your business:

  • Upgrade your Vision or Strategic Plan for Post COVID-19!
  • Clarity on Current Reality – Do more with Less!
  • Outsource non-core Business Functions
    • HR
    • Accounting & Bookkeeping
    • IT
  • Form buying Groups – Join Southbrook Hub
  • Identify all your skills
  • Create 3 Action Items each Day
  • Prepare for Setbacks!