It has been more than one moon phase since the effects of COVID-19 began to take their toll on individuals and businesses.
As the weeks wear on, the realities of change are beginning to sink in. The COVID crisis has wiped out or wounded business cash flows. Certain business operations have had to bear the brunt of the economic disruption. Retail and entertainment operations are facing tough choices right now. Commercial rents, which were already quite high, might never return to their pre-COVID levels.
How does a business owner sort through all of these variables and determine the best course of action?
Many people struggle and experience high levels of stress around addressing business or financial challenges. The complexity of the issues and the fact that financial matters become intertwined can result in too many variables for the logical mind to process. The last thing that anyone should do is bury their head in the sand. Adapting to sudden or unexpected changes can be very difficult.
Taking stock or inventory of your situation is the first step in making any sense out of it. It is absolutely the first step in being able to make any rational decisions. What are your assets? Can you re-purpose them? Is your cash flow running out? What can you do with the reserves that you have? We find ourselves in extremely challenging times, but there are opportunities to be had. Pivoting, shifting and realigning your business may not be as difficult as you envision.
As the weeks wear on, each and every business owner will have to take some action. If you have questions or would like to discuss a financial assessment of your business, now is the time to do it. There are always more options on the table before the wolf is at the door.