If you are anything like us, you are probably tired of hearing about the Coronavirus and COVID-19.
Of course many businesses have been affected, some much more than others, but maybe now is the time to start thinking about the future. Here are some steps that you can take to do that:
First of all ASSESS THE DAMAGE: What has the impact been on your business during the crisis? What’s your revenue year to date compared to the same period last year? This will give you a sense of the damage that is being done.
Next, LOOK AT YOUR CASH-FLOW NEEDS: Look at all the major inflows that you’ll have in the next few months and then all the major outflows. Factor in any government stimulus entitlements that you’ll be receiving also. Now ask yourself if you will need additional funding to get your business back to normal.
Now is more important than ever to UNDERSTAND THE KEY DRIVERS OF REVENUE AND PROFITABILITY IN YOUR BUSINESS such as:
- How many customers do you have right now compared to 12 months ago?
- What is the make up of new revenue in your business?
- How many leads do you generate?
- How many leads do you convert into new customers and how much do these new customers spend?
- What are your expenses running at?
- What is your gross profit percentage?
- What other expenses do you have in your business?
Once you understand these numbers it’s time to make some plans. Putting these plans into action will keep your business moving forward so you can thrive in the aftermath of this crisis.
If you are ready to begin making plans to secure your business’ future, we’re ready to help. We can assist you in those early stages of analysing the impact and looking at your cash-flow requirements to help you understand those key drivers.
If you’d like to have that discussion and think about where your business goes next, please contact us. We’d love to have a chat with you.