Your test was negative, but your sales have been cut in half—if that describes your situation, your condition is probably terminal unless you take prompt action. Hoping for a quick turnaround is equivalent to sticking your head in the sand. So, what’s the best course of action?
You must accept that COVID is burning up your cash because your sales are no longer sufficient to cover your overhead. If sales don’t bounce back soon, your only chance is to sharply cut your overhead. That isn’t easy as you can’t change the cost of your building, tell the equipment lessor to reduce the payments nor make much of a dent in the other front office costs.
Amazingly, while overhead is hard to cut, it can be made to disappear! You can make that happen by consolidating with another similar business and doing all your work in their plant. This is almost always possible because most firms in our industry operate only a single shift with perhaps a partial second, giving them the ability to more than double sales without any increase in overhead.
Making this happen requires reaching out to firms in your area with similar equipment and market focuses and talking about a win-win solution. Bob Lindgren, a principal of The Management Guys, can work with you to get this done. Call him today at 818-219-3855 (email: bob.lindgren815@gmail.com).