Right now, it’s critical, if you want to profit and prosper through this period that number one, you protect what you’ve got, number two, you need to pivot. The challenge with pivoting is many people do this without really understanding best or worst case scenarios. And right now, in these uncertain times, we need to be preserving cash and being very well managed with what could be, a finite resource.
Now, I’m all for positive thinking and we need to be positive and proactive in order to get through this. So what you need to do is, as your pivoting and you’re putting new ideas in place, you need to think about how is this going to impact.
Ask yourself the following questions:
- How much cash is it going to burn?
- How much cash do I need to put into this in order to test this concept?
- If it goes well what will this mean to our cashflow? (Do some forecast projections)
- If this does not go well what does that mean? (You need to truly understand the worst-case scenario and how that could impact your cashflow)