As dire as present conditions are for many Americans, notes Rayanne Buchianico, many channel pros are doing relatively well, especially if the funding they applied for through the federal government’s Paycheck Protection Program has arrived.
“You've got money in the bank, probably more money in the bank than you likely ever had before. You’re busier than ever. You might even be picking up a few new customers here and there and getting new contracts signed,” says Buchianico, owner of ABC Solutions, a Clearwater, Fla.-based provider of accounting, tax, and business services to IT providers.
And all of that’s great, she adds. It’s also subject to change without notice, however. “I’m just trying to suggest that you be cautiously optimistic about all of these things, because we don’t know exactly what’s going to happen,” Buchianico says.
The smart move, she continues, is to prepare now for the possibility of leaner times ahead by conducting an honest evaluation of what customers paying steadily today are likely to be paying you tomorrow when they have less income and fewer employees. “Once we know what your actual future revenue is going to be on a monthly basis, then we can start doing some planning and preparations,” Buchianico says.
Assuming there’s reason to expect less revenue going forward, those preparations should include an aggressive round of cost cutting. “Take a look at everything,” Buchianico advises. Then rid your budget of ineffective marketing programs, unutilized software subscriptions, and unsold product inventory.
“If you need new equipment, consider leasing,” she adds. “It’ll be a little easier on your cash flow.”
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