By: Jason Schneider, CPA, Partner, Osborne Rincon CPAs
As we stare down the peak of the COVID-19 health crisis, people and businesses are doing everything they can to get by and make ends meet. There’s no denying the health tragedy at hand, but we also need to acknowledge and plan for the recovery from the economic fallout and challenges as well. Looking at the impact on the economy and the coming months, it’s imperative that we begin planning now for how we’ll pull ourselves and our businesses out of the economic hole that has been created.
The federal government developed several economic stimulus packages for those affected by COVID-19, and hopefully you’ve been able to take advantage of them by now. If not, as of this writing, it’s not too late to put in for an Economic Disaster Relief loan or a Paycheck Protection Program loan. Your local CPA or banker can help you navigate this process.
In addition to the immediate stimulus opportunities, it’s important to prepare your business to be ready to operate fully once we are able to move about and conduct commerce again. Preparing a cash flow projection for your business for the next 3 months, 6 months and 12 months will help you determine your cash flow needs for capital use or borrowing.
One of the key lessons learned through this global pandemic is that most businesses were ill-equipped to operate in a fully digital or virtual environment. We were forced to learn and adapt on the fly while businesses that had prepared or were already working in this space were able to transition seamlessly.
We keep hearing words like “the new normal” and while this helps us cope with the environment we’re in now, we need to use this time to transition our businesses into the “next normal.” To ensure you’re able to not only make it to the next normal but thrive, it’s imperative that you understand the scalability and digital infrastructure of your business.
Take this time to get a firm grasp on how you will meet the needs of your current and future customers in the digital space. Are you able to scale your business up or down based on factors that are out of your control? Do you fully understand your pricing structure, and can you scale it accordingly?
Many times, small business owners spend too much time working “in” their business as opposed to working “on” their business; a lesson to be gained from this slow-down. Now is a good time to set up your business digitally in order to take advantage of the current and future market conditions. Lean on your professional partnerships as you work to evaluate how to best grow out of the current business climate and into the recovery period.
For more information call Osborne Rincon CPAs at 760-777-9805