As communities lift COVID-19 restrictions and we begin to revive our economy, small businesses must have plans to navigate an uncertain marketplace. Stabilizing cash flow is paramount. Here are some financial forecasting strategies and considerations to place your enterprise in a stronger and more resilient position.

  • Maintain weekly, monthly, and quarterly revenue, expense and cash flow forecasts based on your business re-opening timeline and new operational needs.
  • Evaluate your business plan, review it regularly, and embed agility into your plan to allow for operational adjustments while minimizing disruptions to cash flow.
  • Stress test your business to track and gauge financial risk under varying macro and micro-economic scenarios and plan accordingly – analyze your budget, consider your burn rate, think about revenue disruptions, and build up cash reserves.
  • Stay current with local economic conditions that could affect your business and revenue – consider the COVID-19 economic impact on your customers, third-party service providers, sub-contractors, vendors and how this may affect your business and cash flow.
  • Factor new operational restrictions and limitations such as teleworking, take-out, delivery or curbside pickup only, capacity and occupancy limits, or other restrictive operational guidelines that may affect revenue and expenses.
  • Plan for new equipment and building/office improvements for compliance with mandated health and safety guidelines as part of your forecast modeling.
  • Closely monitor and plan for supply chain interruptions, vendor delays, and inventory shortages/price changes that can impact your operations and affect cash flow.

Moreover, this is a good time to review your company’s indebtedness and consider refinance opportunities to take advantage of low interest rates and equity capital to pay for new investments, operating expenses or grow cash reserves. The SBA 504 refinance program is a viable option and has a proven track record of helping small businesses navigate a challenging economic environment. The 504 refi helps small businesses restructure existing debt on their commercial real estate by locking into fixed 20 or 25 year, below market interest rates, providing predictable, lower monthly mortgage payments. Click here to learn more about the program.

For the most up to date resources, subscribe to the SomerCor e-newsletter. For additional industry re-opening requirements, state-wide and Chicago-specific guidelines are included here.