We’re experiencing some lean times right now, there’s no doubt about that. As the economy takes a dive and there remains some uncertainty about the way things will reopen, most of us are looking at ways to get our businesses through the rest of the COVID-19 pandemic as unscathed as possible.
And if you’re not thinking about that, you should be.
The fact is, the economy will not stay down forever. There will be a surge, and when that day comes, you’re going to want to be prepared. So, the question is, how do we get there?
Fortunately, although you cannot control COVID-19 or the economy, there’s plenty that you can control within your business. I call them “levers,” and today I want to talk a little about the spending lever and how to control it to your advantage in two specific ways: adding and subtracting. Simple as that.
You Need Help
Chances are, you’ve heard at least a little about the various federal programs that have been and are becoming available to help out business owners. Take a look through some of these and assess whether one of them might be a good fit – the SBA website is a great place to start.
Adding some funding from a loan or grant can help give you some cushion as you continue to keep your normal business functions running, bring employees back from furlough if necessary, and budget for the future. Provided you’ve got the right financial setup for something like a loan, it doesn’t hurt to have some help.
Doing the BAM
As someone who helps clients get their finances in order, I often find myself using various technical terms or fancy jargon, but often, I prefer to make things as simple as possible.
With that, let me introduce you to the concept of the BAM – that is, the Bare-Ass Minimum. This should be a guiding principle for your financial planning at the moment. But what does this concept mean for you?
Well, you’ve probably seen a charge for a long-forgotten subscription come through your account before. You know, something you really meant to cancel because you aren’t using it. That’s exactly the kind of thing I want to encourage you to cut down on.
Take some time to comb through your business’ spending and evaluate each item. Do you need it? If not, shave it down. By doing this, you conserve your resources for a future moment where they might be a lot more useful.
Of course, these are just two ways to get your business spending in a healthier place so you can move your organization confidently forward after the economy heals and things get back to a kind of normal. For the full guide to financial planning during this difficult time, read on here.