CO— Blueprint: Planning Through Uncertainty

This year, the coronavirus pandemic has caused businesses to reshape how they provide their services. Companies need to operate in compliance with state orders to keep their employees and customers safe, all while trying to turn a profit in order to stay in business. CO— recently hosted a panel, Planning Through Uncertainty, featuring small business owners and financial leaders, to help give small businesses some guidance. Here are four key takeaways from our panel on how your business can plan through uncertainty.

Now Is as Good a Time as Ever to Start a Business – as Long as You Have a Plan

If you are interested in starting a business, don't let the coronavirus pandemic discourage you. The same principles apply now as they did in a pre-pandemic world. You need to have a plan as to how you'll raise capital and how you'll be able to sustain yourself as you start and as you grow.

Manny Cosome, President and CEO of CFO Services Group, advocated that entrepreneurs should still be looking for new opportunities and starting new businesses, so long as you assess the market and know what's out there.

“Make sure that you create a set of financial projections for yourself,” Cosome said. “You have to have a really clear roadmap as to how you're going to start your business and growth through the first few months, weeks, months, and years of the business.”

Businesses and Entrepreneurs Should Have an Informal Financial Board of Directors

With tax laws and operation restrictions changing at a moment’s notice, it can be difficult for small businesses to financially know where they stand and how they should plan for the future. This is why it helps business owners and entrepreneurs to have a small network of trusted financial professionals that they can turn to for advice.

Christopher Hollins, Managing Director GM Cash Management for Chase Business Banking, called this your “informal board of directors.” He described them as, “People you can bounce ideas off of, that you can get their honest perspective on where things are financially, where they are with the economy.”

An informal board of directors that you can share ideas with and ask for their insight gives you a network of people to turn to. When you need access to capital or help navigating tax changes, these experts can point you in the right direction.

Companies are Having to Incur New Expenses to Accommodate the Coronavirus Pandemic

It would be naive to believe that when companies and businesses are allowed to go back to work, they can simply have employees and customers wear masks and remain socially distant. Small businesses are taking on new expenses in order to operate during the coronavirus. Often, they're doing so with less income and a smaller capacity for customers.

Restaurant owners like Michele Gatonof Extra Virgin, have had to change their menu, train and hire new staff and add online delivery platforms. These actions are all in addition to new expenses that were not covered by the PPP loan.

“There have been tons [of new expenses],” Gaton shared. “To deal with crowds and try to be in compliance, we just hired a security guard to make sure everyone's socially distancing and wearing that mask. So, it's been a huge expense and none of it is covered by the PPP. That's difficult.”

You Can Expand Your Business and Marketing Strategy by Remembering Three Simple Factors

Companies need to think outside of the box when their business faces uncertainty or an economic downturn. However, it’s important to not overlook the fundamentals when you are looking for an alternative revenue stream.

“There’s really just three things you need to think about [to diversify your revenue],” said Cosome. “Focus on ‘what I sell,’ ‘who I sell it to’ and ‘how I deliver it.’”

Cosome stated that companies need to think outside the box when it comes to the services they can offer other people, their audience and how they can distribute it.

“Every time you change up one thing, it actually exponentially adds more revenue streams to your business,” Cosome said. This strategy enables businesses to sell more and, more importantly, adapt quickly to new situations.

“If something happens to one of those streams, you can quickly pivot to another one and just pick up and keep moving along,” Cosome added.