We are all in crisis mode, especially small businesses. Here are some ideas on responding so that your business can survive—and thrive after this is over.
We recommend you conserve the cash that you have, which of course, includes your checking and savings accounts. Steps to consider:
- Delay paying any income taxes originally due on April 15th for 90 days—to July 15th as approved by the US Treasury department.
- Delay paying any estimated income tax payments until later in the year.
- Contact your bank and either get a moratorium on your payments for the next 30 days, or their agreement that you can pay interest only
- Pay the minimum on any credit cards—keep your credit rating strong while keeping the most cash in your account.
- Talk to your vendors and suppliers—what is the least you can pay them now?
- Furlough any non-essential employees—if in NY—check out the NY unemployment program that allows employees to work fewer hours and have some of the difference paid by unemployment.
- Talk to you customers—they are feeling the same strain too—if you carry customer receivables, negotiate payment terms so that they will pay what they can.
- Work with your suppliers to pay the least amount necessary, try to pay small and local businesses first—we want our local business community to survive.
- Eliminate any expenditures as possible—what services are not needed when you don’t have customers? Any subscription services that can be cancelled for the interim? Make sure you don’t have any automatic renewals pop up and surprise you.
- Develop a weekly cash flow worksheet for now until at least May 31st.
Above all, hang on to your cash, it’s going to be hard to replenish.
Here at IncubatorWorks, we are all working remotely, but we are still available to support you in this time. Don’t hesitate to contact us at firstname.lastname@example.org with any questions about these recommendations and any other questions that you have. And stay tuned for more ideas on how to get through these times.
Also, checked out Empire State of Development website for more information as it evolves for detailed guidance for businesses.