Dispatch #11 - Maintain a Sense of Business Urgency

The full title of this post by Chris Burns of CFOs2Go is, “COVID-19 Startup Update: Immediate Actions to Take.”

The startup and venture-capital references don't apply to most contractors, but the rest of the advice does.

In a nutshell:

Most companies will see dramatic decreases to their revenue and cash immediately and it will be difficult to drive expenses down as quickly. You should reduce your cash burn rate immediately to mitigate losses and extend your cash runway. Many companies will be too slow to react and will fail.

It’s an excellent reminder to maintain a sense of urgency, even as we see some “good news” like the stock market ticking up, the $2 trillion stimulus package, maybe a job site opens up, etc.

Need help with this or other financial matters faced by construction contractors? Let’s talk!

David Stern CFO makes every effort to provide useful and accurate information. This content, however, is not intended as a substitute for specific business-related financial advice. We disclaim all warranties and liabilities from its use.