The main objective is PRESERVATION OF CASH for survival. Here is a simple checklist to help you survive financially.
FOR SMALL BUSINESS
- Scrutinize closely your Balance Sheet
- Reduce inventories (or stop accumulating inventories)
- Only stock essentials materials for production of high margin goods/services
- Analyse debtors and collect if possible
- Revert to only cash sales during this period
- Defer long term investments
- Invest in short term safe securities
- Negotiate with creditors/lenders to defer/relax payment terms
- Liquidate some assets to stay afloat
- Protect your bank balances
2. Rationalise your cash flows/Income Statement
- Explore online delivery channels
- Prioritise high margin products
- Cut all unnecessary expenditures
- Temporarily Reduce staff compliment
- Un-subscribe from non-essential services
FOR INDIVIDUALS
3. If you lose your job/income source
- Time to pivot into new service lines
- Acquire new skills and exploit new opportunities; every crisis has a silver lining;
- Liquidate savings/assets if any
- Downsize lifestyle and implement austerity measures
- Renegotiate loans/obligations
- Defer non-essential spending
- Exploit your social capital
- Seek bailout from friends/family
- Prepare for the next crisis (learn to save, invest, build resilient business) Pray! Stay strong! Every dark cloud has a silver lining.
4. Investment opportunities during COVID
- Essential services (food production, delivery, online services, medicare, pharmacies, etc.)
- Fixed income securities (Tbills + bonds)
- Cheap equities on NSE/USE
- Cheap assets of failing businesses
- Cheap qualified talent who have lost employment
- Re-think your business strategy and come up with new service lines/products/ marketing/etc.
PS. Join us to tomorrow for a Zoom Workshop at 10.00hrs EAT to explore this in detail.
Zoom login details:
https://us02web.zoom.us/j/89263226962?pwd=RWZNZzl6VmJGNlo1eDJrZy9XN0xPQT09
Meeting ID: 892 6322 6962
Password: 244192
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