Financial Thrive to Survive Plan – Canadian Edition

Financial Survive to Thrive Plan – Canada

1. Take a Systematic View of your business

• Negative or Positive? What is your mindset?
• Figure out the new “normal”
  • Economy will struggle post COVID-19 (6-12-18 months)
• Review your business and clients. What % decrease in Sales are you expecting for 2020? Which option are you finding yourselves in?
  • Maintain Price and volume
  • Maintain price & decrease volume
  • Decrease price & maintain volume
  • Decrease price & decrease volume
• Recession Proof your Business
  • Focus on Service type business
  • Get “real close” to your customers! Know what value you bring to them!
  • Communication with clients and staff – be transparent and build connection

2. Cut Costs

• Look line by line by supplier – tedious, but effective
  • Ask staff where you are bleeding money
  • Nice to have vs Must have? Make hard choices
  • Credit cards – recurring monthly charges & subscriptions (Spotify, Audible, etc.)
  • Lay off Staff vs “Carrying” staff? Don’t deplete your cash reserves while you are not working!
  • Contact Insurance Company as lower sales = lower premiums

3. Track Cash Flow

• Daily, Weekly, Monthly
  • Ensure you understand your Profit & Loss Statement and Balance Sheet and where your company actual is position financially! Review your ratios

4. Creative Ways of Improving cash Flow

• Access Eligible Grants
  • Summer student – 100% Wage subsidy
  • $40,000 Business Loan
  • 10% Wage Subsidy – up to $25,000 per employer
  • 75% Wage subsidy
• Deferrals of Fixed Payments
  • Reopen lease and finance to change terms
• Negotiate terms with Suppliers
• Ensure deposit structure is enforced for Landscape Projects
• Request clients to pay for 100% of contract upfront (offer discount)
• Cut fixed costs

5. Update your Budgets based on % decrease (visit section 1, bullet 3)

• Plan for recession (less sales)
• Realize that you will have a shorter season in 2020
• Utilize LMN for Contractors

6. New Norm – Working “ON” your business:

• Upgrade your Vision or Strategic Plan for Post COVID-19!
• Clarity on Current Reality – Do more with Less!
• Outsource non-core Business Functions
  • HR
  • Accounting & Bookkeeping
  • IT
• Form buying Groups – Join Southbrook Hub
• Identify all your skills
• Create 3 Action Items each Day
• Prepare for Setbacks!

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