Right now, just about everyone is worrying about their finances. And with business activity at near-Great Depression lows because of multiple forced shutdowns, and unfortunately, no real end to the crisis in sight, finances is something we probably should be worrying about. But if we’re proactive, it is possible to manage them in the best way possible.
In our latest webinar, with James Malcolm, CPA qualified accountant and founder of CFOs on Demand, we talk about all things finance, from the broader economy, to what you need to be doing right now to better manage the cash flow of your business. James discusses what your priorities should be and what we can expect the business environment to look like over the next 6 months.
Right now, we all know that the economic situation is less than ideal. But, James says, some businesses are faring better than others:
‘A number of industries have been completely turned off, which is heartbreaking. This includes hospitality, leisure, and tourism.’
‘Some industries are less affected though, including services and the information economy. Companies that have a digital offering or a culture of remote work are faring better, but by and large, all companies are feeling the pinch.’
James says that some small businesses, including businesses run by a lot of our Mums & Co community, are at risk:
‘Small businesses, including those that are reliant on a small pool of clients, may have less revenue streams at the moment. Businesses with lots of debt and low profit margins may also struggle.’
There are some characteristics that some businesses have that make them more likely to weather the storm, though. Find out what James thinks they are in the webinar, access it here.
It’s certainly a sad time for most businesses at the moment, James says, but he recommends trying to continue running your company, if at all possible. This is because:
‘Even if you run your company at say 10-20% capacity, it will make it easier to bounce back when things turn around. Remember, things will bounce back and when that happens, hopefully, they’ll be a lot of pent-up demand.’
In tough times like these, James recommends conserving as much cash as possible as it’s the lifeblood of your company. In order to do that, there are two levers you can pull, James says:
‘Reducing rent and reducing employee costs are the two things you can do.’
But of these two, James definitely recommends beginning with rent:
‘Every business I deal with is currently having some kind of dialogue with their landlord. If your revenue has been affected, and many people will have a strong case as to why that has happened, you may be able to take a rental holiday or a deferral.’
If you can help it, James says, try not to stand down your employees. There’s a good reason for this, find out what it is in the webinar.
Listen to the webinar now to ensure you’re financially prepared for the crisis.
Mums & Co have created a special taskforce to support our 345,000 + members to best manage throughout the coronavirus crisis. The taskforce includes 15 experts, who will be answering your questions via daily webinars and making themselves available for individual consultations, if you need. We’re also developing a chat-bot to support you, 24.7.
We’re here to support you and we’re stronger together. Join us here.