Planning Ahead For Your Business

Jennifer McCluskey

I am proud of all the work that you and all of our North Country business owners have done to make it through this difficult time. We may have a long road ahead, but you have worked hard to get here and have held on through many challenges. One way to be stronger for the path ahead is to take a good hard look at how your business did during this crisis and find out if there are things that you could do better to prepare for the future. This is a great time to figure out a solid contingency plan for your business, since this disaster may have exposed areas in which your business is weaker. You have a chance now to learn and to figure out policies that will allow you to be better prepared in the future. 

    One big area where businesses struggle significantly is cash flow and being able to set aside a “cushion” of savings. Sometimes businesses expand too fast or buy that bright shiny piece of new equipment maybe before they were ready. This pandemic may have shown you that your cushion might have been too small to deal with a possible emergency. Have you ever played the board game Risk? In the game of Risk, if you expand too fast then on the next turn the other players will wipe out all your armies because you’ll be too weak to defend. You have to expand slowly from a solid base that can be maintained. It’s the same in business: you need to shore up your current business and have enough savings to support yourself before you start trying to expand. 

    I know this is hard for businesses that are constantly living on the edge of solvency. But maybe now is a good time to make a financial plan to figure out how you can get to the point where you do have enough of a cushion to get through a couple of months with little to no income. And if you don’t think it’s possible for your business to ever get to that point, maybe you need to make some radical changes, or possibly maybe it’s time to move on and try something new. Talk to your SBDC counselor. We can help you develop strategies, look through your budget and see where changes can be made, and provide support in whatever way you need. 

    Other areas you might want to consider looking at include:  

  • Develop work from home or contingency location plans. You may have found that having some of your employees work from home went OK for your business. If you likely now have the technology capabilities you need to implement this strategy again in the future if needed.  
  • Assess communication between you and your employees. Now that they are back in the office, find out if there could be ways that you all could communicate better in the future. What systems are you going to put in place so people can get access to critical information and can make critical decisions? Does everyone know his or her role in a crisis?
  • Put key business instructions in writing in an employee manual, or consider training employees to be able to do each other’s jobs. What if a key employee or owner gets sick? Would the business be able to function without that person? Are other people than the business owner authorized to speak to the bank, accountants, and attorneys if needed?

If you need assistance with your business during this difficult time, you can reach out to your local Small Business Development Center office. If we can’t meet with you in person, we can talk on the phone, teleconference, or email, whichever works for you. We are free, confidential, and always available to help. You can reach the SUNY Canton SBDC at (315) 386-7312, SUNY Canton SBDC at Clinton Community College at (518) 324-7232, or the Watertown SBDC at JCC (315) 782-9262.