We have approximately 60 employees
This is what we are doing/did:
- Implemented across the board salary cuts
- Negotiated extension with vendors in terms for AP
- Immediately applied for all government assistance as well as additional lines of credit
- Monitoring AR, especially watching for influx in late/no payments as well as AR ratio
- Immediately reverted back to 2019 budgets
- Immediately eliminated all non critical expense spending
Our sales have leveled at about 50% down. I expect it to get worse.
I couldn’t imagine being a business owner of something completely shutdown such as a gym or restarting, at least we still have minor revenues coming in.
I’d imagine that the vast majority of businesses are going through this.
One thing I constantly wonder is wtf is going to happen when when all these businesses are taking on LOC’s, extending AP payment terms to the max, cutting massive expenses, etc etc, it makes me question what’s the end result of all this leveraging, I just can’t see how it can end well.
Prior to this we have decent cash savings and operated fairly frugal. I cannot imagine being a business owner right now who had low cash reserves or were overly leveraged, they will be annihilated.
This is going to destroy many businesses. I don’t think people truly realize the negative impact that’s still be had on the economy, we are just at the beginning.
Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence.