Speaking exclusively during MyBusiness Week, Stuart Donaldson, founder of Banyan Co, explained the importance of post-pandemic planning to ensure the survival of the business.

“You have to learn to dance in the rain,” said Donaldson, believing that the current environment is not going to go away, but instead could linger for a decade, which makes it all the more important for them. business owners to adapt to changing circumstances.

“Every business needs a cash flow forecast,” Donaldson continued.

“In the context of the environment we find ourselves in, this has never been more important.”

He explained that this can be done in two ways, a 13 week rolling cash flow plan or a standard 12 to 24 month monthly plan.

“It depends on where you are in business. If you’re heavily impacted by this whole COVID-19 pandemic, you’re probably going to need a weekly rolling forecast. You have to consult it daily and update it, revise it, ”he said.

“If it’s more conventional for you, and yes there is some impact but it’s not dramatic, then I would suggest the 12-24 month plan. “

He stressed the importance of building a “cash war chest” by pivoting, accessing government cash flow increasing initiatives and grants, or managing spending.

“As business owners, we are all familiar with the term ‘cash burn’. I suggest we reverse this by building a treasury trail. We want to be able to stretch our cash flow as much as possible, ”Donaldson said.

To do this, he advised companies to take a closer look at available ATO support, explore debtor-creditor negotiations, short-term financing, lender and owner deferrals, and the collateral loan program. to SMEs.

“We need to explore all options,” Donaldson said.

“In my opinion, one of the most important things you can do right now is to be able to communicate with all the stakeholders. If your business is suffering and you need to have as much cash as possible then I suggest you pick up the phone and talk to all of those key stakeholders.

“Call yourself debtors, seek their support, explain your situation. Explore the refinancing options, do you have the capacity in your balance sheet to do so. Look for loan relief and deferrals from banks, and of course leasing and homeowner support. “

At this point, companies will be able to determine what their recovery might look like.

“We do our cash flow modeling, we look to the future and we understand how long in weeks or months we have free cash flow and what we’re going to do to grow our sales in order to get ourselves out of there, survive. and thrive. “said Donaldson.

For more information on cash flow planning and guidance on forecasting in uncertain times, click here for Stuart’s MyBusiness Week session.