ALL YOU NEED TO

REOPEN YOURBUSINESS

REOPENING TOOLKIT For Small Business

The impact of Covid-19 has beenshocking and difficult for smallbusinesses. We still face many, manyuncertainties. However, as we shift ourmindset from reaction to the pandemicto recovery from the pandemic, it is timeto prepare our businesses to reopen in anew, and still evolving marketenvironment. That's the purpose of this Toolkit. This is an effort by the Cape Cod & theIslands SCORE mentors to provide thebest thinking we can on how you cantake steps now to help your businesssurvive and prosper. We don’t knowwhat that looks like for your business,but we’re prepared to help you think itthrough.

REOPENINGTOOLKIT FORSMALLBUSINESSES

Small Business Owners Brace For The Worst

You can make an appointment for a FREE mentoring session by calling508-775-4884 or go to capecod.score.org

Are you a no, low, medium or high-human-contact business?Can you run all or a part of yourbusiness online NOW, or do you needto wait for permission to open fromthe state or town where you dobusiness.?

One sure thing that’s going to have tochange is your method of doingbusiness.  You have to think of yourselfas an essential or non-essential business,how you interact with the public andwhat new needs your customers willhave.

As you plan your reopening, focus onwhat we call the BIG QUESTIONS thatwill lead you to your plan. These are theelements that you should look at morecarefully with your SCORE mentor andother business advisors.  In particular,focus as soon as possible on looking atyour cash flow, with several scenariosbased on different reopening dates.What do you need to do in order tomake it to reopening, and what doesyour cash flow look like once you do?

START WITH 2 BIG QUESTIONS

AssessAccountPlanCommunicate

4 Steps:1.2.3.4.

What's the current status of your business?

1.Closed 5. Partially Open 10. Fully Open

How much physical interaction do you need to havewith your customers?

1.Little 5. Moderate 10. Fully Engaged

What will be important to yourcustomers as you reopen? Do theyhave fears? Will they be reluctant toengage with your business? List allthe potential barriers that yourcustomers may have.How are you really doing financially?To fully understand how you canoperate in the future, you need a cashflow forecast. Create differentversions: an optimistic model, a likelymodel and a low income model. Playwith the timing of reopening andcustomer returns. An easy way to dothis is to use SCORE's Excel Cash FlowSpreadsheet (all the formulas arethere--you just need to input thenumbers and play with a range ofvariations). While a forecast is alwaysyour best guess, take steps to make itas accurate as possible.

Gather past financial records,including leases, 2017/18 businessand personal tax returns, 2019business returns. Not available?Use your 12/31/19 P&L and BalanceSheets (you'll need these if youplan to speak with lenders).In your various versions, consideryour expenses and group theminto 3 groups: must have, nice tohave, don't needInclude your payroll again thinkingabout must have, nice to have,don't really need

Before you can plan you need to fullyunderstand the state of your ownbusiness as well as the state of mind ofyour customers. Take the time to dig in.

1.

2.

Understandingthat will driveyour futurebusiness

SCORE Cash Flow Spreadsheetcapecod.score.org/resource/3-

year-cash-flow-statement

ASSESS

ACCOUNT

How much cash infusion doyou need? After reviewing your cashflow options, it will becomeapparent how much cashyou'll need to reopen and tocover you for the first fewmonths. You'll need to makesome hard decisions. RULE #1: Cut early! RULE #2: Cut BIG! RULE #3: Double your initialestimate! It's far better toassume a slower start andlonger recovery and thenadjust for a better situationthan the reverse. Second oreven third rounds of cutsare even more devastatingto your company, youremployees...and yourself.

What Do You Need To Survive?

Do you need to rethinkyour retail layout toaccommodate socialdistancing?Are there newcleaning/disinfectingpolicies that you need toenact?Should you be doingmore of your businessonline?Where do you hold yourclient meetings?

What are your customerstelling you?We can all reopen ourbusinesses but if ourcustomers don't engage, wecan't succeed.

How might you recreate the customerexperience to make it safer, moreeffective and more efficient?What needs does the pandemiccreate to put idled resources to work?Who can you partner with to createnew events, services, opportunities?What are other revenue sources?What are other funding sources? Keepup-to-date with new fundingsources/loans/grants.How can you protect existingrevenue?What physical accommodations doyou need to make customers feelmore comfortable?

What Changes Will There Be In YourBusiness Model?Can you (or should you) pivot to a newbusiness model that transforms whatyou do and how you do it. Think of thisas an opportunity to improve yourbusiness, to do away with some of thosenagging issues that constrain you. What will that new model look like?

PLAN

Form industryinterest groups todefine and policesafe practices. Build confidence bycommunicatingplans to the publicand authorities.

What level of staffing do you need toreopen?

Short-term? Intermediate-term?Long-term?

Will your staff be available?What do your employees need rightnow?

Whole or partial reimbursement forlost wages?Equipment, supplies or assistanceto work from home at the level youwant and need?

Can you put staff to work in othercapacities?Be HUMAN

Your loyalty and honesty now willimpact your futureAsk them to brainstorm with youas to what the future may look likeExplain your decision processwhere you can

What kind of training will you need?And how much?Prepare you and your team for the"new normal"Train while you're still closed ifpossible

STAFFING

TRAINING/RETRAINING

PLAN

Contact all your suppliers to ensurethat they are (or will be) open and areable to ship your ordersRenegotiate terms as neededSource new suppliers when neededto meet financial andquantity/delivery timing goalsBe a team player. You need thesepeople as much as they need you.

How do you handle out ofdate/seasonal merchandise?

Return?Markdown?Hold until next season?Sell to other suppliers?Sell online via outlets like EBay

What are the "right" levels of newinventory?

Is your inventory perishable/timespecific or can you afford to buylarger quantities and store?What turn rate do you need onspecific items to ensure success?

SUPPLY CHAIN DISRUPTION

INVENTORY MANANGEMENTMake sure all

the parts fittogether.

PLAN

COMMUNICATECreditors/lendersLandlords/utilities/insurancecompaniesCurrent customersPotential customersEmployees

Create a relevant message foreachThink about what's mostimportant to themReaffirm your ValueProposition

Social media (improve yourSEO to ensure you'rereaching the right people)Traditional mediaPerson to Person written ordigital communication

TO WHO?

WHAT?

HOW?What's the right way to connectwith each of these groups?

CommunicateYour Plan

We hope this Toolkit helps you get onthe right track to reopening yourbusiness. It's a good start and we'll addmore over time. None of us are so naive as to think that this is an easy job. It'snot. It's probably the hardest thingyou've ever had to do. And it's evenharder if you try to do it alone. SCORE Cape Cod & the Islands has over50 experienced mentors who can helpyou put together the right reopeningplan for your business. Every businesswill have different needs so we'reprepared to hunker down with you, diginto the numbers and work with you todevelop the best possible reopeningplan. So contact us. We'll be there to helpyou, mentoring remotely via phone orvideo conference until such time as wecan meet in person. Stay well!

CONTACT SCORE AT508.775.4884 TO

REQUEST A MENTOR

You Don't Have To DoThis Alone

Funded in part through a Cooperative Agreementwith the U.S. Small Business Administration. All

opinions, conclusions, and/or recommendationsexpressed herein are those of the author(s) anddo not necessarily reflect the views of the SBA

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