Sunday, May 3, 2020

Crisis Preparation for Small Business

The last thing small business owners think of is being prepared for a crisis.  "I don't have the time";  "I don't have the money";  "It'll never happen to me".  When a crisis hits, most small business owners are not prepared...many don't survive.

A recent guest speaker at the Small Business Course I teach at George Brown College shared his strategy for dealing with crisis in his 30 year old prosperous small business:

  • Be on top of your cash flow.  The most important thing for a small business owner and even more critical in a crisis when revenue slows but expenses don't
  • Have a contingency.  Cash is best.  Build up a reserve that allows for 3 - 6 months of operation without any revenue coming in
  • Analyze your receivables.  Collect as much as you can now;  make deals with those you can't;  plan for write offs
Other strategies to build up your crisis preparation are in the infographic below:

Until next time...
Chris Morales, Toronto, Marketing, Author

Chris Morales

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