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How long is your businesses runway? Is your business going to be able to take off in future?

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For your business to come out the other side of COVID 19 restrictions and more importantly the recession, it is crucial that you buy yourself as much time or “runway” as possible.

How do you as a business owner extend the time your business has to survive and ultimately “take off” and thrive?

Here are the top four things you can do right now to make it through and prosper from the current challenges:

1. Review the government stimulus options, at federal, state and local levels. Then apply for every one of these options prior to their cut off dates (you would be surprised by how many miss out due to missing deadlines).

2. Review your business expenses and list these into three columns – Essential/not negotiable, grow/add value and commodity/low value.

3. Put in place a 90 day plan to get your business through the next 90 days and to keep everyone focused during that period of time. 90 day plans often cover a financial projection of the key business metrics (bank balance, loans, sales, gross profitability, overheads and net profit), as well as changes that need to be made in the business during the next three months.

4. Look after your own mental and physical health. Recessions and challenges like we currently face are marathons not sprints, so take care of yourself and think long term. It is crucial that all business owners are giving themselves the best chance of succeeding and this occurs when we are at our best and we present that way at our businesses. 

So, how many months of “runway” cash has your business got? Could you wait out a further six to twelve months of reduced trade?

If you either answer no or not sure to either of the above questions, now is the time to invest time and potentially money in working this out.

Trust me in most cases it will help you sleep at night, even if the answer is not the one you were hoping for.

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