As you know if you’re running a business, it’s rough surf out there these days. I heard some good advice this week about how to keep your business healthy in this difficult environment:
- It’s hard to plan very far ahead these days. Revenue in particular is hard to project. It’s prone to sudden drops and forward “visibility” is limited: sometimes as little as a week or two. It is critically important to keep an eye on your revenue pipeline.
- The most critical challenge for businesses today is maintaining liquidity. Revenues are unpredictable, customers are slow to pay, and credit is limited or even unavailable.
- You should be preparing contingency plans: Plan A, plan B, and the “break the glass” plan in case of extreme emergency. Why? Because when the time comes to use any of these plans, it will be too late to make them up.
- You should communicate with your investors and your lenders. The good will in those relationships will help you in hard times.
- If you believe you have issues, confront them directly and quickly.
- Because of all the turmoil, it’s a great time to be building your brand and increasing your market share.
What other things are you doing to manage your business in these uncertain times?