Mitigate Economic Impact of COVID-19

CoronaVirus (COVID-19) is officially a global emergency and the small business community in the United States is beginning to feel the shock waves. We do not know how long this economic disruption will last, but we can only hope for the best. In the meantime, it is so imperative to plan and identify ways we can mitigate the economic impact on our businesses. 

Consider these two risk mitigation strategies to help you weather the storm: 

1. Develop a thorough forecast of the financial impact to your company and identify any potential changes like loss in revenue and changes in receivables life cycle. Because the current economic climate is so volatile, constantly review your forecast to anticipate any additional changes.

2. Cut spending where possible and act fast, delays can further dwindle your cash reserves because there are so many uncertainties. Review your direct cost, overhead expenses and G&A  expenses to identify saving opportunities; also look into increasing your AP cycle where possible, vendors are more willing to negotiate terms given the current circumstances. 

The sad reality is, we can almost predict that there will be another global emergency; the most effective way to prepare is to start building a business savings for contingency. 

Please stay safe and up to date on the latest developments around COVID-19.