COVID-19: Top 10 Business Steps For Practice Owners
Before we get to the steps you can take, here is my first suggestion. Take a Breath. We are going to get through this. Together. And come out the other side stronger and more unified. The groundswell that I've heard from others is amazing - the common theme is people's willingness to help each other get through these extraordinary times.
1. Communicate with your team. And then communicate some more. It's okay to be honest - to let them know that these are unprecedented times and that we'll get through this together. At the end of this article I have included links to resources to help you address specific scenarios regarding your team and potential options for you to consider in the near-term.
You may well have very difficult, emotional decisions you must make regarding your team. If you have to have a conversation w/a team member that you find difficult, acknowledge the difficulty at the start of the conversation. Be open, transparent, and honest.
2. Talk to your creditors and vendors. Ask if you can stretch out payment terms wherever possible. This will allow you to conserve cash as you juggle reduced office hours and continuing to pay critical team members.
3. Manage your accounts receivable. See if amounts owed to you can be repaid sooner than the agreed upon terms.
4. Talk to your bank. If you have a line of credit established, consider leveraging it. If you don't, explore opening a line. Remember, this is different than '08-'09. This is not a financial crisis - it's a healthcare crisis. Also, many banks are instituting mortgage payment relief programs.
5. Considering leveraging a 0% interest credit card offer. While you might pay a fee (say 3%) it would allow you to bolster your short-term cash position by 12-18 months. HUGE CAVEAT - make sure you pay the balance before the grace period expires or you'll get hit with a massive interest fee.
6. Contact your insurance carrier and review your policies for potential business interruption insurance.
7. Contact the SBA about a potential disaster assistance loan for your small business.
8. Contact your CPA and/or financial adviser to assess where you are financially and any additional steps you can take to strengthen your short-term position.
9. If you owe federal taxes, delay filing/paying until the new IRS deadline of July 15th, 2020. Check with your individual state to see if they have synchronized with the new federal deadline.
However, if you have a refund coming, file now and get your cash!
10. Consider refinancing your existing debt. Rates are at historic lows and this is one of the quickest and easiest ways to increase your cash flow. And the entire process can be done online/remotely and quickly. Here at HPA we can guide you through the refi process and help you determine how much your monthly cash flow would increase.
11. Communicate with your patients and customers. Let them know that you will be coordinating with them regarding their care and that you appreciate their understanding during these unprecedented times. Assure them that any elective procedures will be rescheduled when there is more clarity as to when things return to "normal". And that if emergency procedures are required you will treat them in accordance with the standards and guidelines that have been established to ensure proper and safe care.
And finally? Take another breath. I've communicated with many of my colleagues across the country - they are committed to helping small businesses and individuals through this unprecedented economic interruption. We will all get through this. Together.
