Stay in touch with the latest news from AIM and get information on sector grants, jobs and events with our free fortnightly E-News.
Coronavirus Resources-Business Resilience Checklist
Are you facing immediate issues? The following checklist may help members consider their current situation and plan for not just the present, but any challenging times.
1. Make sure your Board is fully aware of your situation and any foreseen challenges, early.
2. Keep communications open – ensure your staff, volunteers and any trade union are appraised of the situation.
3. Prepare a worst-case scenario cash flow and update it regularly. Depending on the financial stresses in your organisation, consider updating it weekly.
4. Have an early conversation with your bank to see what support it might provide – overdraft facilities, for example.
5. Talk to any significant grant providers (e.g. ACE, your Local Authority) early. See if grants can be paid earlier than planned but remember to have regard to cash flow later.
6. Talk with your most significant creditors and see what can be done to stage or even delay payments.
7. Identify your non-fixed costs. Can you reduce, delay, or even consider stopping them? Can you delay projects or similarly non-essential spending? Review the need for any new recruitment. Could it be delayed?
8. Step-up your credit control processes. Make sure that you are on top of any money that you are owed and watch for signs of financial distress from your significant debtors. Consider asking for upfront payments and / or larger deposits e.g. for any group or corporate bookings.
9. Draw on experienced financial expertise to assist in your understanding of the situation.
10. Be clear about your immediate liquidity. Avoid getting into a spiral of decline, especially if this is a short-term problem. And be ready for when things improve, too.