6 Things To Do Now That COVID-19 Has Disrupted Your Manufacturing Business
- Remind your team how important they are to you and your manufacturing business.
- Many of you have received calls and messages from significant customers that are part of the Homeland Security essential business list. Some of those calls are for support for you and how important you are to their business and their supply chain, you’re a partner, not a vendor to them. Spend time nurturing those relationships now and connecting with customers.
- Stand tall as leaders and be great examples of how to manage under fire.
- Virtually meet frequently with your leadership team to adjust, plan and support each other. Set the meetings frequency and cadence that is best for your team.
- Call suppliers and partners to get an update on your supply chain and what constraints are happening or might happen as a result of disruptions in their business.
- Ok, now 2 CPA ideas:
- Establish a 13-week cash flow modeling system to get you through this critical economic cycle. This tool will allow you to week by week model out your significant cash flow expenses and cash receipts. For example, what vendors get paid, how much and when bank payments are made, budgeting of payroll and related benefits and taxes and other expenses of the business. It also allows you to forecast when customers are expected to pay and to stay on top of your receivables. This tool is used by many of the best consultants that work with distressed businesses. The goal is to work to model out the entire 13 weeks to understand and adjust your business model as needed and seeing as early as possible when you need to course correct and make adjustments.
- Identify a list of possible ways to save cash and expenses and prioritize and quantify those. You’ll now have levers you can pull if needed on your 13-week cash flow model.
For more information, contact Randy Feld, CPA, at firstname.lastname@example.org