16 Immediate Actions Company Owners Should Take to Protect Their Business’ Financial Health During COVID-19
(April 9, 2020) Coronavirus COVID-19 impact on business is devastating. Here are sixteen protective actions private company owners should take to protect financial health now, including financial ratios to measure and planning to consider. Click through to the article for an expanded discussion of each topic.
Summary of Topics Discussed
1. Short Term Tactical Scenario Planning
2. While Optimism Has Its Place, Plan for a Recession
3. Focus on Cash Flow
4. Create a Database of Contractual Payment Obligations
5. Manage to Liquidity and Solvency Ratios
6. The Cash Conversion Cycle
7. Consider Modifying Your Supply Chain
8. Tap Existing Credit
9. Evaluate Payroll
10. Study the New Coronavirus Aid, Relief, and Economic Security Act (CARES Act)
11. Consider a Loan
12. Review Your Insurance
13. Review Your Debt Covenants
14. Plan for Employee Absenteeism
15. Plan for Business Continuity/Illness Contingencies
16. Plan Strategically
Not all will apply to every company, but these tangible steps to mitigate the devastating COVID 19 impact on business may be critical to survival as a going concern.
Please look for my periodic business ownership guest column on ThomasNet.com, the business to business marketplace, linked above.
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