Our very own Marissa McKinney and Emilie Naderzad sat down (virtually, of course) with Reisa Elden of Houzz to discuss strategic financial planning during the pandemic. The Logistis for Designers co-founders used their bookkeeping and accounting expertise to discuss key financial strategies that all design firms should be doing during this time of uncertainty, in terms of forecasting, continuity planning, tax deferment and spending of federal relief funds. The goal was to educate business owners on strategies that will help their firms have a stable financial ground to stand on during an economic downturn.
Their discussed strategies included:
- How to create three-way forecasting plans that address scenarios from the good and the bad to the ugly
- How to create a business plan that focuses on growth
- How to avoid operating in the red, as well as how to protect your cash flow
- How to defer or delay IRS and state sales tax payments
- How to keep your focus on your current clients
- Where to use relief funds
Marissa told Reisa that creating a strategic financial plan for business success should go beyond acquiring immediate funding and temporary relief: “I really think that businesses need to shift their mindset and start thinking more strategically about how you’re going to ride this out and emerge stronger on the other side.”
Emilie stressed the importance of purchasing accounting software and creating a cash-flow analysis to effectively plan for worst-case scenarios. “During this crisis, it is more important than ever to know your numbers. What we really learned from experiencing the last recession is that firms who had accurate and current financials were better positioned to handle a downturn in the economy.”
The recurring theme of the webinar was how imperative it is to know your numbers and plan strategically. Now is the time to be thinking of your firm’s future.
While we sincerely hope you take the time to watch the webinar, we will leave you with some key advice from our expert duo:
- Run a cash-flow analysis and plan of action based on your better, same and worse scenarios.
- Perform a SWOT analysis, evaluating the strengths, weaknesses, opportunities and threats your business faces.
- Reshape your 2020 business plans, consider deferring taxes and create a clear vision for moving forward.