COVID-19 And Middle-Market Business
These are trying times. They are also confusing times and for a multitude of different reasons, scary times. Perhaps you are afraid for your health. Perhaps you are fearful for the impact this situation will have on your business. Perhaps Both. Regardless, one thing is clear, there is more panic than answers. And that is never a good thing. Let me implore you though to stand firmly knowing that “this too will pass”.
My expectation is that within a few weeks the world will be back to normal and life will continue to press on. That said, even relatively short downturns can cause major issues for small and medium size business owners. So, what should you do? Here are a few thoughts.
Cash is King - If you have some cash, sit on it for a bit. Let this thing ride out for a few more weeks before you make any big gambles on anything new. Cash is the lifeblood of business. Without it, it’s tough to survive. So, keep your cash close find ways to be liquid as we go through the next month or so.
Evaluate your plan - We talk about this all the time at SGS, but it is so critical to have a plan in place that allows you to weather these types of storms. Doing so not only helps in these moments, but it will drive up the vale of your company when it is time to exit. Take another look at the balance sheet, look into the operational efficiencies of your business model, check-in with your people. Do what you can to make sure you have contingency plans in place for the next disruption. You and your company will be better for it.
Watch the Fed - Pay attention to what the Fed is doing. Whether it’s interest rate reductions, stimulus, etc. Understand how these things can effect your business. Take advantage where you can.
Take Advantage - For some of you, you’ll be able to capitalize on this in epic proportions and you’ll create even more wealth as the tide turns back positive and the markets come back. Look for potential acquisition targets, look for IP to acquire and with interest rates low, look for opportunities to potentially borrow in areas where the dollars are cheap but the return is big.
SGS is wishing all of you business owners safety, peace and together we can pull through for an even better tomorrow. Stand firm in the trying times so you can fly again as the winds get behind us once more. The fundamentals of this economy are strong and American business is strong. We can and will be back in short order.