I posted a blog today with 8 action steps you should take for the health of your business and your personal finances, but I wanted to go to a few more details specifically for small business owners.  I'm not going to beat around the bush, so here they are in no particular order!

1. Collect any outstanding accounts receivable.  ASAP....I'm suggesting you don't hesitate to offer a discount either to get that money in the door.  15% if you pay today, 10% if you pay by the weekend and 5% if you pay by next Wed.  Remember, if they go bankrupt, you'll get nothing.

2. Create an additional line item for expenses directly related to coronavirus, called just that.  It's very likely that these items such as clorox wipes, sanitizer, medical expenses for employees, OTC medicines, childcare for employees, etc will become tax deductible for you as an employer and tax free to your employees.  Here's a link to an article where you can read more.

3. Call your vendors and ask for terms to stretch your cash available right now.  Let's say you owe a vendor from 2 weeks ago coming due in 2 weeks on a normal 30 day terms. Call and ask if they will work with you on 60 or 90 day terms and a payment plan. You don't want to fall behind or leave them hanging either, but your 4 walls are critical and cash is king.

4. If you sell a product, consider eliminating your low turnover product.  Especially if you have  something in high demand or can pivot and begin to offer or create something to help others in this time.  This is essentially cutting your low producer to grow your large one.

5. Take the time to review all of your expenses and systems.  Are there any that provide low/no benefit that can be eliminated?  Are there systems you pay for that are duplicating services?  Is there an opportunity to save both time and money by taking the time to add automation to your systems?  Evaluate the expense side often. As things rapidly change, so will your idea of necessities.  

Get the full recession response plan here and please don't hesitate to take advantage of my free open office hours in the upcoming weeks.

Kristen specializes in working with small business owners in both their businesses and their personal lives to maximize their financial capabilities. Financial Fitness Coaching is also offering open office hours currently for anyone who’s interested, clients and non-clients are all welcome to come during open hours right now and get the help they need. Please check Financial Fitness Coaching’s Facebook site for up to date hours of availability for FREE open office hours.