Greg Herring knows the numbers tell a story, and when it comes to COVID-19, the numbers only continue to get more daunting.
Herring, the founder and CEO of The Herring Group, a consultant company, hosted a free webinar March 20 for business owners to help answer some questions that keep coming up as state and federal mandates become more pressing. These questions include things like, “Will my company survive a shutdown?” “How do I keep my employees healthy?” “Are my employees consider essential or nonessential?”
Herring said there’s three critical steps to take as the situation becomes more urgent. First, build liquidity immediately – he said you’ll need cash soon. Secondly, understanding the customer’s mindset by segment is important, as some homeowners will probably want to discontinue service but HOAs might not. Have narratives ready to deliver to convince clients that they should continue service. Finally, plan for several outcomes or scenarios that happen as a result of the coronavirus outbreak. Herring said it’s largely possible many companies will lose all of their enhancement revenues, or they could lose a large fraction of it.
Herring said so much of this situation is beyond your control – be as prepared as you can and be ready to act fast.
“We don’t know what will happen, but you and your management teams can identify the scenarios that are likely to exist,” he said. “You probably need somewhere between three and five scenarios.”