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Small Biz Insider: Financial Advice to Weather COVID-19

Published May 08, 2020 by Maggie Martin

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This is a special episode of Small Biz Insider, a podcast from the Greater Houston Partnership. 

In a recent Houston Business Barometer Survey, half of small businesses who responded said they had applied for assistance through federal stimulus programs. About 60% of those had received funding. But even with federal aid, many small businesses have had to rely on the financial assets they have on hand to stay afloat. 

On this episode, we're helping you make a financial game plan to guide your business through COVID-19. Our guest is Maurice Champion, who runs the middle-market banking group in Houston for Cadence Bank. 

Here are some key takeaway's from this episode:

  • First step of getting your finances in order? Call your accountant. Champion said it's important to get with your accountant to review your current balance sheet, see where you’re at from a working capital standpoint, what cash you have on hand. If you’re a business that generates receivables, are you collecting them? If you have a lot of payables, can you get better terms? 
  • Create your reopening plan now. After you have your baseline for today, make sure you have a model in place to scale back up. Don't wait until you're told the demand is there. Ask yourself if you can produce the volume you need to at least break even and make a profit in this current environment. 
  • Start with the idea that everything is negotiable and fair game. Champion advised small business owners call everyone they work with, including landlords and banks, to ask for deferrals if they need them. "Ask, try to negotiate and see what you can do and that’ll help you with your baseline budget and may be able to extend you through a few more months without borrowing more money for your business," said Champion. 

Click here for more COVID-19 resources for small businesses. Visit the Partnership's COVID-19 Resource page for updates, guidance for employers and more information. And sign up for email alerts from the Partnership as the situation develops. 

The Small Biz Insider podcast is part of our digital series highlighting entrepreneurs in the greater Houston region who are making a big impact in the small business community. 

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