“In times of crisis you have to prioritize and execute.” Said the former US Navy Seal Jocko Willink, author and TED talker. What has that got to do with making your business survive and thrive in this time?

Well, lean time forces you to focus on core business. When times were good, you could afford to be lax with everything. Not anymore.

This is the time to prioritize essential and necessary costs, reduce or even eliminate the rest. All this is to maintain liquidity, as cash is king in any business.

As you are getting ready to reopen, do you know what is the first step to do?

To get started, you need to have good (or as best as you can) record to help yourself plan better -

• Profit & Loss: the top source of revenue & key expenses – payroll, rent, insurance, marketing

• Open Invoices: anticipated sources of cash

• Unpaid Bills: expected short-term outflows

Once we have the above info, we can evaluate things to maintain the precious liquidity.

First Step - Increase Cash In

1. Accelerate accounts receivable

• Choose how to manage outstanding accounts to increase cash on hand

• Use personalized invoices to speed up payments

2. Explore relief funding options

• Loans, grants, Unemployment Income

3. Think of creative ways to adjust business models and increase revenue options

• Set up a business for online sales

• Offer services remotely

• Gift certificates with a small discount for future delivery of goods, or pre-paid bundles

Second Step - Reduce Money Out

1. Lower or defer payments

• Reduce fixed expenses: Large monthly expenses are the easiest to identify. Lowering them can have a substantial impact on available cash for the business. Work with the landlord, insurance broker, lender to see if you can defer or lower the currently due payment.

  • Rent

  • Insurance

  • Payroll

• Check current bill status: Vendors may be flexible on timing or be able to offer payment plans.

• Explore options to defer loans and taxes.

2. Cut back discretionary spending

• There’s a wide range of expenses that can be controlled and aren’t necessary—either in the short term or at all. Turn off autopay until you prioritize the spending.

• Recurring expenses: cancel or suspend supply monthly or quarterly orders, subscriptions, or memberships.

• Marketing and advertising: Marketing budgets typically have some flexibility, and you should be able to adjust them for the next few months.  Caution should be taken to prioritize revenue-generating methods.

This is only the first step in a long road ahead to recovery, but staying afloat with liquidity will prepare you to come out of it better than anyone else, run faster and farther in your next leg of the journey called entrepreneurship.