Recommendations for Managing Your Business While Surviving a Pandemic

The coronavirus pandemic has sparked pandemonium all over the country. Businesses of all sizes have been disrupted by the virus as a result of local and national reactions. For small business owners, having to close their doors for business immediately carries implications on their personal finances. With the landscape changing in varying degrees by geographic region, timeline unknown, we ask you to review your cash flow strategies to prepare for 90 days of coverage.

Mission Statement

At Financial Foothold, we know that managing your back office can be time-consuming and overwhelming. We believe every business owner should have a secure financial foundation so we provide accurate and consistent accounting management to help you scale with confidence.

Our Core Values

Seek To Serve

(Service-Minded)

We define success by serving our clients well, not just completing tasks.

Embrace Every Detail

(Details-Oriented)

We know that every detail matters because collectively they accurately tell our clients’ financial story.

Initiate Solutions

(Leadership Initiative)

We own the responsibility to provide proactive solutions to our clients.

Communicate More

(Clear Communication)

We are committed to clear and consistent communication because our clients deserve transparency.

Scale Together

(Organizational Health & Growth)

We are constantly adapting, improving, and innovating processes to help our clients scale with confidence.

90 Day Mission/Vision

To appropriately prepare, please complete the following steps:

Step 1: Outline Cash Needs

Determine your monthly and quarterly cash requirements for both your business and personal needs. On the personal side, have a serious discussion with your family around limiting discretionary spending. For your business and personal, monitor and reduce variable costs and manage paying fixed expenses.

  • Fixed – Rent & Utilities, Insurance, Advertising, Loan Payments
  • Variable – Salaries, Supplies, Merchant Fees
  • Discretionary – Meals, Travel, Equipment Purchases

  • Fixed – Mortgage, Utilities, Insurance, Loan Payments
  • Variable – Groceries, Fuel, Clothing
  • Discretionary – Entertainment, Travel, Hobbies, Dining Out

Step 2: Consider Cash Sources

If you need more cash to cover the needs listed above, evaluate possible sources for additional cash. This could mean working with creditors to defer payments or pay the interest only on debts, or even accessing lines of credit (LOC) loans.

  • Cash Holdings
  • Loans – Business LOC, Home Equity LOC, Unsecured LOC, 401(k) Loan
  • Accessing non-cash accounts – 401(k), HSA, 529 Plan, Roth IRA
  • Personal Stock Brokerage Accounts
  • Decrease Tax Payments
  • Defer Loan Payments

Step 3: Determine Priorities

This is where the strategy comes in to play. With the cash you have, you will next need to assess which items you are able to tackle, and in what order. Assign due dates to each of the items below to aid in prioritizing the cash flow needed for each item during the 90 days.

  • Necessary Business Expenses
  • Necessary Personal Expenses
  • Tax Extension Payments
  • 1st Quarter Tax Payment
  • IRA Funding
  • Qualified Retirement Plan Funding
  • Working capital available upon reopening business
  • 2nd Quarter Tax Payment

Peace of mind comes from preparation and confidence in a well constructed plan

In times of uncertainty, financial security will offer you and your family what it needs to breathe deeply and enjoy this period where we are afforded extra time together.

Contact Our Team

We are here to help guide you through your personal situation