Responding to Business Disruption
Small businesses are a crucial part of our communities. We know the evolving COVID-19 situation has left many small businesses wondering about their next steps.
If your small business has been disrupted in recent weeks, read on to learn about the four steps business owners should take.
Locate All Financial Documentation
You’ll likely be in touch with your lender or bank. It’s important to have at least the last three years of balance sheets, financial statements, cash flow, and tax returns ready to share with them.
If your business hasn’t been operating for three years, provide as much history as you can.
Take your time to get these documents organized. Your financial records will help tell the story of your business.
Review Operational Expenses
If you’re seeing a downturn in sales or have had to temporarily close your doors, it’s important to think about ways to preserve cash. Think through any operational efficiencies you could put in place to preserve your cash on hand.
When thinking about employee expenses it’s important to think beyond labor costs. Are there other expenses, perks or allowances provided to employees that could be scaled back?
Check Your Credit
You need to understand your credit score. If there are any issues, you’ll want to address them immediately.
Contact the SBDC
Our team at the Missouri Small Business Development Center at Missouri State University is here to help. We’ve compiled COVID-19 Response Resources and are taking meetings daily with small business owners.
Our confidential, one-on-one consulting services can help you think through a variety of topics, including: business models and potential pivots, financial projections and benchmarking, new financing options including disaster recovery loans, and more.
You can schedule your meeting today. Our team will also be hosting upcoming webinars to discuss disaster recovery loans, reducing operating expenses, and more. Find the full schedule on our calendar.