If you’re on social media, you’ve seen this game played before – Three Truths and a Lie. It’s a favorite of mine, and I thought today’s post was perfect for a play on that!
I’m having really good conversations with clients, colleagues, and friends these days about finances – from business to personal. I thought it’d be super helpful to share bits of these conversations with you so that you see yourself as capable, find community among your peers, and maintain hope in your business.
1. Cash is QUEEN. – TRUTH
“Havin’ money’s not everything, not havin’ it is.” – Kanye West
Regardless of your feelings about the guy, his lyric rings true.
While you’re taking action in your business to mitigate a potential loss or if a loss has already occurred, I want you to add one thing to your goal list.
Set up or review your business’s cash savings.
Get clear on how much cash would sustain your operations, your team, yourself, your building, etc. Then, take baby steps to save 1 months’ worth. Next, bump it up to 3 months. Then, 6 months.
You may be thinking – I can’t even make this month’s expenses. How am I supposed to save? Keep reading.
2. Know your numbers. – TRUTH
Figure out where you can scale back in your business’s expenses. You’ll know very quickly where to make spending cuts if you know your numbers™️.
Go LEAN! There’s never been a better time to do a full evaluation of business operations than now. In fact, you should be doing this at least quarterly even when times are good.
Here’s what I know about you –
You don’t want to lose your clients/customers.
You don’t want to lose your team.
You don’t want to lose your pay.
You don’t want to lose your business.
However, the reality is that some businesses have been operating with way too much overhead. Recovery and subsequent sustainability will depend on understanding who and what are essential for running a profitable business.
3. Diversify your income. – TRUTH
The businesses that are striving either had multiple streams of income, some of which were unaffected by city and state-wide stay at home orders, or they were able to pivot very quickly into models that allowed them to continue running their business.
4. It is what it is. – LIE
It’s not too late. We can make it through this.
Let’s reflect and restructure our businesses. Or as my business coach Ashley Gartland says – let’s set up our runway so that when business resumes, we’re stronger than we were before this pandemic.
1. Set up or review your business’s cash savings.
2. Run your Profit & Loss Statement for March, or pull your March bank statement and tally your expenses.
3. Brainstorm new ways to package your products and services that appeal to a wider audience at a price point they can afford.
4. Reflect and restructure. Use our journaling prompts in our last blog post as a start!
If you need help with any of these areas, let’s chat!
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