Governor Abbott is allowing a variety of businesses to reopen at 25% capacity. Many of us are eager to get back to business. Before you reopen your businesses, it is important to make a plan. Before you rush to your business and start spacing out the socially responsible distances on the floor with black tape, take a deep breath and consider this.
How will you physically adjust your workplace to accommodate 6 or more feet of distance between employees and groups of customers? Do you have the equipment to make that happen? (Tables, work benches, desks, private offices, floor signage, lobby and counter space?)
Can you organize to keep customers separated by 6 feet as they enter and leave your building? If your business involves work on a customer site, can you protect the health of both your employee and your customer?
How will you deliver your products and services under these conditions?
How many employees? Which employees? What will be your hours of operation? Do you need more than one shift? What will your payroll cost be?
How will you communicate with your customers that you are open and why they should come back to you? What will that cost?
Can you get the supplies you need? Can they be delivered and received safely? Are your normal vendors open to serve you? Have you confirmed the details with them?
What volume of sales can you expect to generate operating at the allowed capacity? How many dollars of gross margin will those sales produce?
Most importantly plan your cash flow. How much cash is on hand? How much credit do you have? How much can you safely use? What will the extraordinary expenses be to get your business reopened? What will payroll costs be each week? How much will you have to spend on promotion? How will the timing of cash work: do you get paid cash at the time of sale or must you offer terms? When will payroll come due? Can you make the cash flow work at 25% capacity? Do you need to wait for 50% capacity or more?
Before you start spending precious cash, answer these questions. Talk the answers over with a trusted advisor. This is not the time to fly by the seat of your pants.
What are your options?
You can open now. You can wait for a larger capacity to be allowed by the Governor. You can really consider that this may be the time to conserve your cash and consider not reopening, perhaps ever.
We will get through this. Arlington is stronger together, and the Chamber is dedicated to helping businesses navigate this unprecedented time. CLICK HERE to view our resource page.