Survival Checklist for Businesses During COVID-19 Closures

Last Updated: Friday, April 24, 2020

During a prolonged economic crisis such as the current COVID-19 pandemic, a business must act proactively to preserve cash at the onset of the downturn in order to improve its chances of survival.

A business's cash is utilized quickly for a variety of reasons, including reduced consumer spending and disruptions in supply chains. Every business facing the possibility of serious interruption should:

KEEP as much of your current cash as possible. To accomplish this goal, you should review operations with an eye towards reducing costs and eliminating all fat

LOCATE cost-cutting measures, including laying off staff without incurring unnecessary liabilities

PREPARE a revised cash flow analysis that conservatively takes into account factors such as:

• loss of customers
• disruption of supply chains
• extended payment periods from your trade creditors
• defaults or extended payments from your customers/account debtors