As of this posting, we are about four weeks in from the time the World Health Organization (WHO) declared the Coronavirus outbreak a world-wide pandemic. Once that announcement was made, our world began changing at supersonic speed. For ecommerce business owners, and many others as well, it didn’t take long to begin to see the effects this would have on their businesses.
Surviving a Crisis
For most of us, this is not the first time of crisis we’ve experienced in our world, nor is it the first time businesses have had to prepare for a recession. We’ve made it through a couple of them in recent history—in 2001 after the 9/11 attacks, and again during the 2008 housing collapse. If you’re feeling shocked and desperate and don’t know what to do next, may it help to understand how recessions have worked in the past.
The Business Crisis Trend
The graphic below, developed by Mike Michalowicz, shows how businesses move through a crisis. If you’re feeling desperate, know that you are right on schedule. Take a look at the graph, give it some thought, and then let’s get you moving forward with a plan to get your business through these uncertain times.
What is the 13-week Cash Flow Plan for Ecommerce Sellers?
Profit First teaches us that the keys to successfully managing your business are data and planning. This is true anytime, but in a crisis the fundamentals become more important. Over the past few weeks, we have been refining our internal tool that we use with clients to advise on cash flow planning. We have made it easier to use so you can create a 13-week cash flow plan for your own business. This is a step-by-step spreadsheet that you can create now and forecast out for the next 90 days. This is the kind of detailed planning you are going to need in order to help you navigate the next several weeks and months.
Last week, one of my Profit First advisors and I were guests on the A2X Accounting webinar, where we talked in detail about the cash flow plan, and walked attendees through the steps of creating their own 13-week plan. The feedback was so positive I wanted to share it with others finding themselves in this situation.
While the webinar is geared towards ecommerce sellers, it can be effectively applied to most any business. In it, we discuss the cash flow crunch many are feeling right now. Taking the standard 13-week approach, cash flow forecasting will—
- Allow you to look forward rather than look backwards;
- Show you when it’s time to act; and
- Help you identify and understand patterns in your operations.
Create Your Plan and Regain Control of Your Numbers
We invite you to carve out an hour to sit and watch our cash flow webinar. Then download the 13-week Cash Flow spreadsheet and create your plan, beginning NOW, watching the webinar again if you need to. The sooner you can get a plan laid out and begin implementing it, the sooner you’ll begin to feel like you once again have the reins of your business in hand.
We received this comment from one of our clients after creating the 13-week plan for her business…
As a bonus, I want you to have our Ecommerce Sellers’ Guide for Financial Uncertainty. I know you’ll find it helpful as you navigate these stormy seas.
Interested in Profit First?
If your ecommerce business isn’t where you’d like it to be in terms of profitability, check out my book, Profit First for Ecommerce Sellers. It answers important questions about how to implement Profit First in an ecommerce business. Take control of your money and your business, and put Profit First to work for you! Contact bookskeep today to learn more about ecommerce bookkeeping.