Lessons learnt then will certainly help their business to survive now – in the linked video below, Jamie talks to us about the processes he has in place, some of which may be of benefit to you and your business at this time.
You can find more content from Jamie on the Mediapoint Blog.
The review notes for easy reference:
Health of staff and family.
The health of your staff and family is number one. Ensure you are putting them first. Your customers will understand this during this time.
Know your current position.
You need to know your current working capital to help tie you through. You need this to determine how long you can actually survive. You also need to work out how much money you are owed from customers and also what you owe to suppliers and work out your position.
Figure our your current break-even point.
Work out what your essential overheads are and what staff entitlements that you need to pay in the case of a lockdown.
How long can you last for?
Divide your working capital by the monthly break-even point and see how many months you can last for.
Are you comfortable?
If you are not comfortable with how long your business can last for, then can you get tighter with your overheads? Can you go to your landlord or bank? Can you extend repayments? Do you need to make some hard calls? Every 10% you can find savings to your cashflow monthly is 10% longer your business can run.
Staff.
Certain contracts and awards have standdown clauses. But ensure you are looking after your staff as much as you can and that they can survive. But the number one priority is to ensure they have a workplace to come back to. When this pandemic gets to the tail end, more people will be unemployed so by you having a job for them is a better position for them than some short term pain.
Keep calm, reset.
This is the best opportunity you will ever get to change your business, use it wisely.
