Angy Chin discusses the top five things CFOs should be focused on for the second half of 2020.
Angy Chin: So the five points that I have from the CFO office, needless to say, it’s all about money, right? That is an important part when you need that to rely for the business. So the first bullet point here is review your burn rate. You know, how much fuel do you need to operate your business on a week to week, month to month basis?
And how much is your fuel going to last you because of the right now is a survival of the fittest. Literally, whoever that can get over this hump without filing for bankruptcy or whatnot, they the ones who are going to go and thrive in the future going into next year. So that’s bullet point number one.
Number two is recalibrate your cashflow runway. Number three is repositioning your business. I gave an illustration earlier of how their percentage of revenue for one of my clients has changed.
I’ll use this opportunity to also give another example. I had a bounce house clients I was working with. And needless to say, during COVID, people are not necessarily buying or using a lot of bounce houses for entertainment purposes or in their backyard and whatnot. So the question is, they have all the raw materials, right?
All all the raw materials that they used to build the bounce houses. Now they’re not building it and then the whole crew in the factory, they’re sitting there and not sewing new bounce houses or water slides or anything. So what could I do? So as we’re just evaluating the needs, and this was back in late March, early April.
You know, the government and hospitals were needing body bags because there are so many people dying and then not enough body bags to put all the day people in. So they started sewing body bags with the materials that they have. So that is one of the things that I put there – the versatility and the dynamics to reposition your business to take, that opportunity and to grab it and to do something about it.
The fourth bullet, to reveal to the new norm, what is going be the new norm? I guess, the super speedy quick change is not going to be the only constant. The people who are able to pivot real quickly with a versatility and not operating like trying to turn this big Titanic ship, those are the ones that are going to survive. So, how do you recalibrate and rebuild your culture and your team to be able to do that in the new norm.
And last but not least, you don’t typically hear that from the CFO office about just rejoicing and staying positive. It sounds more like an HR thing than anything else, but I tell you that that is so, so powerful and so important because especially for people who are looking at numbers, we’re looking at a piggy bank and looking at that bank going down. I’ll tell you the amount of pressure and the sleepless nights is enormous. The people who are closest to the money, they are the people that have the greatest amount of stress in their life, in the company or in the household. So it’s very important to stay very anchored, keeping that positive attitude and really taking that to think about the energy that you’re vibrating off to be able to get your business out of this current hum.
Because without that, if everyday you coming to work doom and gloom, we’re out of money and all that, the battle has gone before I even started today. So, remember to rejoice and stay positive.
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