In these uncertain times, it is clear that the need for cash is going to be paramount. So here are some action points for you to review consider implementing:
- It is important to preserve as much cash as possible. Normally we would be saying that a spend up on certain items before the end of the financial year is a good move but not this time. It will be difficult to predict how your customers and suppliers will emerge from this so let’s be prudent in the spending.
- Make contact with your customers that owe you money to discuss how the current situation is effecting them. Do you need to enter a payment arrangement with them in order to keep the cash coming in. Just a thought .. if they have been having difficulty paying through what has been good times then it is only going to get harder for them. You may need to review whether you continue to supply or not.
- Your suppliers – with air and seafreight being disrupted you may want to check with your suppliers to ascertain if there are going to be any supply issues in the near future. With this information you will be better informed to make decisions regarding your business moving forward.
- Funding Lines – once you have looked at the above, it maybe prudent to touch base with your banker and other funders to update them on your position even if you think you have not need them.
- Your team – it is just as uncertain for them or maybe they haven’t even considered it. So it is a good time to communicate with them your thoughts and consider options (or prepare for) a remote working situation.
- Then there is you .. no doubt this could be one of the most stressful situations that you have faced as a business owner. If you are a Xero user, Xero provides mental health support. Click the link here to find out more www.xero.com/nz/xap-faq or the Ministry of Health some some resources that can be accessed here where to get help
Remember we are here to help and if we can be of any assistance please contact us .. we are all in this together.