Unprecedented to say the least...
Who would have thought that the US government was going to—in a matter of a couple of weeks—approve and fund $350 billion dollars for small business to sustain payroll and operations?
As Sully Sullenberger, the pilot of US Airways Flight 1549 that landed in the Hudson in NYC, was quoted (in the movie) as saying “Everything is unprecedented until it happens for the first time.”
The first round of PPP funds have been released. So what happens now?
You may be wondering: What is the best way to use PPP funds to help small businesses stabilize? What is YOCFO doing at this time with our clients?
We are recommending several different approaches for rolling out the payroll protection funds.
Set a 2-Month Budget for the PPP Funds
Set up a 2-month budget plan and then a subsequent 6-month plan. Look at what funds you will need in your account to sustain a further downturn or at a minimum very few new sales over the full 8-month period to the end of this year.
Identify Better Ways of Doing Business
If you see a potential opportunity within the COVID-19 crisis with more remote work or new ways to monetize online activity, do it FAST! Everyone is trying to pivot in this way.
Organize Your Small Business Data
Make sure your financials are structured to give you real time metrics, so you can pivot or scramble accordingly as this is not going to be a straight line recovery of any sort.
These are just a few ideas, plans and action items to consistently manage as an owner during the Coronavirus pandemic.
As COVID-19 continues to cause major disruption across the world the US Government has stepped up to be the backstop for the SMB marketplace in order to get it back to health. Here we sit as money starts to flow into bank accounts across the country into 10’s of thousands of small businesses at about an average amount of $200K.
Just today the Senate passed an additional $484B for the PPP and EIDL programs!
This crisis was a big awakening for the small business market and hopefully it embeds in our minds forever that staying ahead of your financial planning, managing consistently into the future AND having adequate liquidity is paramount for survival.
Calculate the FIGSCORE™ for your business
The Financial Intelligent Growth (FIGSCORE™) is an essential calculator Your Outsourced CFO has developed to help small business leaders score their financial health – in “quarterly real time” - and provide a baseline for understanding both challenges and opportunities for growth, profitability and longevity. Connect with us for a free evaluation and calculation.
Original Author: Jeff Bruno, CEO
Your Outsourced CFO helps the modern CEO strategize for growth, while continuing to manage critical financial processes monthly, quarterly and annually. We act as your executive sounding board and work with you through every major decision to help achieve growth milestones.