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Business Planning for 18 -24 Months in a Post COVID Environment

Published on: Fri 3rd Jul, 2020 By:

Navigating the 80% Economy:
Working Capital and Liquidity in the Pandemic Age A planning program being offered to our existing clients. Simplifying Strategy Development

Many of our clients have applied for the Paycheck Protection Program stimulus program, while fewer have applied for the Economic Injury Disaster Loans. In either case, the stimulus provides some relief against the economic damage your business may be experiencing as a result of the Coronavirus pandemic. While helpful, these programs will provide a limited amount of liquidity during the 3rd and 4th quarters of 2020.

The issue that The McQuillan Group is concerned about is the remainder of 2020. We do not envision a “V” shaped recovery for most of our clients. We are expecting a recovery that resembles a longer sloped line. Economic recovery is going to take some time and we want to help your business in preparing for the challenges the recovery will present.

We believe that additional economic stimulus funds will diminish as the year evolves. How well your business survives this crisis is directly dependent on how well you plan today. Success is not an accident and planning makes a difference. We should talk!

Working with The McQuillan Group, a detailed analysis of your company’s current condition will be developed, with the final product being a series of strategies and action plans, that provide a roadmap for navigating through the challenges ahead.

Flexible Solutions for Your Individual Company’s Liquidity Needs.

In order to prepare for the unanticipated future we are proposing an intense, formal planning process be started.

  • We want to ensure your business has sufficient credit tools to meet its working capital requirements for the balance of 2020.

  • We want to ensure that your business’ costs are proportionately maintained with your revenue.

  • We want you to have multiple choices and strategies to consider moving into the second half of 2020.

Managing the Process
  • Plot 2018, 2019, and year to date 2020 (the period).

  • Calculate common measures for the period.

  • Calculate liquidity benchmarks for the period.

  • Project monthly revenue, cost of goods sold, and expenses for the period April 2020 through December 2020. If by the end of 2020, stabilization to 2019 values are not achieved, project performance into 2021. Determine the damage value and the damage duration.

  • Create a best case, high probability, and worst case scenario and project before tax cash flows.

  • Analyze fixed costs.

  • Determine the business’ liquidity requirements for the damage period.

  • Determine where working capital requirements can be minimized.

  • Calculate the working capital and liquidity deficits given the projection models and develop strategic options.

  • Decide on a strategy and plan for a successful implementation of the chosen strategic direction. Communicate the decision to the management team and stakeholders.

Project & Application Management

When all the scenarios are reviewed and you determine the direction that is best for your business, The McQuillan Group will establish action plans with well defined work breakdown schedules. These work breakdown schedules are then designed into projects, which you the client would manage with our monitoring.

The way we do things has changed. In a brief 15 years we have experienced two of the most drastic occurrences in finance. Is there a new normal? How should a business owner view these events and how are these events going to change how a business is sustainable in the future? Its time for a conversation. We are waiting for your call and Thank You for your business!