Financial planning and re-forecasting during these strange days will be an essential survival skill. In this post, we’ll review a financial template you can use to model out extreme changes in sales, margins and cash flows.
“Nobody told me there’d be days like these.” — John Lennon
Strange days, indeed. Bars and restaurants are slowly re-opening, and social distancing is now a survival skill. Most peculiar.
The situation is disorienting, confusing and generally freaky. And yet, the show must go on. We have a distribution business to run and employees who need clear direction and leadership.
The model below summarizes financial contingency plans to set cash flow expectations. It also serves as a tool to present your anticipated cash needs to lenders or outside investors.
Let’s hope everything gets back to normal very soon. If not, this financial model can be used to help plan for these abnormal conditions.
Wrap Up + Action Items
In this uncertain time, a good financial model can help provide some certainty. Watch the video, download the Re-Forecasting-Model, and borrow from the ideas presented here.
Wishing you all the best during these strange days.