Checklist for Surviving a Broken Economy

Cash Flow Forecasting

• 13-week projection of the company’s available cash.

• Operational cost forecasting by week for the quarter—inventory, fixed costs, variable costs, payroll, etc.

Establish Break-Even Point

• What is the minimum revenue needed to pay expenses

• Establishing this point will help you put together a model of spending cuts and cash conservation efforts.

Financial Aid Packages

• Many government entities are releasing financial aid packages for business owners that apply.

• The process is an in-depth application submission, asset verification process and agreement documentation.

Comparative Financial Statements

• The government requires a comparison to monthly financial statements from past and current periods.

• This comparison must show loss of revenue and profits.

Calculating Lost Revenue

• This is a detailed record showing the difference between the amount of money you make in a given period versus revenue during the same period last year.

• Keep these detailed records for aid applications; many will ask you to estimate the amount of revenue you lost because of the crisis.

Financial Modeling

• Flexible tools to detail the future performance of a company’s working capital and economic performance.

• Each model must be updated weekly and serves as a decision-making tool that shows the potential consequences of certain decisions before the decisions are made.

Bank Packages

• New requirements for business loans, disaster loans and lines of credit.

• Do you qualify for financial aid?

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