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
- Accounting & Bookkeeping
- Form buying Groups – Join Southbrook Hub
- Identify all your skills
- Create 3 Action Items each Day
- Prepare for Setbacks!