- Use your mentor network.
- In order to stabilize cash
- In order to inject cash quickest,
- Discuss your situation with your lender and CPA.
- Rally your remaining employees
From Dave Erickson, Director, ASU Small Business Development Center (ASU SBDC) 3-24-2020
We know this is an extremely difficult time for our small businesses; many are experiencing severe shortfalls in revenue due to the crisis causing a severe cash crunch, which causes them to make very difficult decisions with staffing knowing the effect it will have on their dedicated employees. They have to make difficult decisions regarding their operations. The following are some things for you to consider as a small business owner that you may do to help your situation if you have not done so already:
- Decide on your short-term operations; decide on what type of business you will conduct during the short term. Ex. Limited hours, takeout and delivery only, focus on certain customers, etc. It is different for every type of business. Be flexible and make changes as things develop. Have your employees help you in this, they can be a great source of ideas, inspiration, and energy during this time of crisis.
- Decide how you will communicate your new operations to your customers and any new customers. Social media is an excellent way to push out your messages. Businesses with social media accounts are encouraged to post information and updates daily. Traditional media is willing to help to get your message out in this situation.
- Use your mentor network. Besides the SBDC business advisors and economic development partners, contact your group of other small business owners to see what they are doing. You can offer them ideas as well.
- In order to stabilize cash, cut the expenses you need to cut, make the difficult decisions now with the eye of knowing it is a short-term situation and things will get back to normal over time.
- In order to inject cash quickest, consider applying for an SBA Economic Injury Disaster Loan (EIDL). https://disasterloan.sba.gov/ela. It is the quickest way I know of to get cash if you qualify. While it may be the quickest, it is still a three to four-week process from the time the SBA receives the application. The SBDC business advisors can assist you with this process. 325-942-2098 or email@example.com.
- Discuss your situation with your lender and CPA. They need to know the situation you are in and they may be able to provide assistance. Lenders may offer workouts and deferments on some exiting loans; they also may be able to offer other financial help. CPAs can assist by guiding you financially through the crisis. The ASU SBDC knows of other sources of loans that may work. There are no known, viable grants.
- Rally your remaining employees around your new operation, and as mentioned before, they can provide ideas, inspiration, and energy.
Please contact us if we can help in any way.