Thoughts on making it through this pandemic

Mark Saiger

Mr Happy!
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Dec 26, 2006
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Grand Rapids, MN
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Mark Saiger
I subscribe to a blog by businessman Larry Janesky. I discovered him actually on YouTube while him and his son doing a crazy cross country desert race on dirt bikes.

Here is today's post that was in my email I felt worthy of sharing.

Cash is Oxygen We don't think about oxygen until we run out of it. Then we die - quickly.

In business, oxygen is cash.

It's critical you have extreme clarity about your cash position and how it will change in the near future.

The following is from Keith Cunningham -

Below are the thirteen most critical key performance indicators (KPIs) and critical drivers required for optics on running your business during a crisis.

You must know and be able to report on:

1. Your current cash balances.

2. The amount of your A/R that can be collected quickly or is overdue. What needs to happen to keep your A/R current going forward.

3. Projected cash flow from operations assuming the current environment remains "as is" for 3-4 months. (Sources of revenue and anticipated expenses to service that revenue... Detailed specificity is mandatory!)

4. Actual vs. Projected cash burn rate. (This is your total expenses on a monthly basis.)

5. Your variable vs. fixed expenses monthly.

6. Payments (loan, landlord, vendors) that can be extended or delayed.

7. The source and amount of additional financing available. (This is either from your line of credit at he bank, additional bank (institutional financing), your personal funds available to be injected if necessary, or friends and family, etc.)

8. Any stray or unused assets that can be liquidated for cash.

9. The amount of your personal burn rate and the amount that burn rate can be curtailed to preserve cash for the business.

10. The excess baggage and fat that can be curtailed/delayed/furloughed/whacked in your expenses. (Frequently some muscle will need to be considered for reduction... the last thing to get cut is the bone. You can't rebuild after the crisis if there is no bone, so be careful here. On the other hand, it does no good to have strong bones but be dead.)

11. Expansion, growth or Cap X plans/expenditures that can be delayed.

12. A detailed, specific summary of all the adjustments you either have or will make and how these changes result in your survival over the next 3-4 months. If you intend to make cuts and reductions in phases, be clear about the benchmarks and triggers for each phase. (Do the math and be clear about your assumptions.)

13. Your communication plan with your team/employees about your plan and how it impacts them. I can tell you from personal experience that if the plan is communicated effectively, it can solidify your culture... but if it is done poorly, it will destroy your culture... Be thoughtful about this. Your employees are not ignorant about what is going on and you pretending everything is okay erodes your effectiveness and credibility as a leader.
 
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SamIam

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Aug 9, 2012
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California
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sam miller
The hardest thing would be if they considered us non essential.

My tech phil went on unemployment and is happy to sit at home until this is over.

If I could get mask and gloves he might help in a pinch.

I've been avg 3 jobs a day for about $600-$700.

And practicing social distancing while in homes.

The first few weeks was slow but I've got 2 for $600 tomorrow



If I do lose Phil I'll sell a van probably the pro1200

As a fire sale.
 
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Fat Mike

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Aug 1, 2017
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AZ
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Mike G
The hardest thing would be if they considered us non essential.

My tech phil went on unemployment and is happy to sit at home until this is over.

If I could get mask and gloves he might help in a pinch.

I've been avg 3 jobs a day for about $600-$700.

And practicing social distancing while in homes.

The first few weeks was slow but I've got 2 for $600 tomorrow



If I do lose Phil I'll sell a van probably the pro1200

As a fire sale.
You have pics?
 

Cleanworks

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Oct 22, 2012
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17,103
Location
New Westminster,BC
Name
Ron Marriott
The hardest thing would be if they considered us non essential.

My tech phil went on unemployment and is happy to sit at home until this is over.

If I could get mask and gloves he might help in a pinch.

I've been avg 3 jobs a day for about $600-$700.

And practicing social distancing while in homes.

The first few weeks was slow but I've got 2 for $600 tomorrow



If I do lose Phil I'll sell a van probably the pro1200

As a fire sale.
Make your insurance is still valid before you set it on fire.
 
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Cleanworks

Supportive Member
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Oct 22, 2012
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New Westminster,BC
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Ron Marriott
Gotta wonder what kind of drugs they give the elite of this world when they get covid-19. Looking at 71 year old Prince Charles today who survived a bout with it and looks no worse for wear.
 

FredC

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Jul 13, 2011
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16,498
Gotta wonder what kind of drugs they give the elite of this world when they get covid-19. Looking at 71 year old Prince Charles today who survived a bout with it and looks no worse for wear.
as will 80% +- of 71 year olds
 
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