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...