TMCnet Feature
August 28, 2020

Will Business Owners be Able to Stay Afloat if a Second Wave Hits? Daniel Orfin Explains How

Many businesses across the United States have started to reopen. However, that doesn’t mean that the pandemic is over. In fact, health experts around the country have all mentioned the very real possibility of a second wave. This has made business owners nervous, now having lived through the devastating effects of the first wave. That said, there are several lessons that can be learned from the first wave, which can better prepare business owners for the potential reality of a second wave.

Daniel Orfin was born and raised in Metro Detroit. Today, he is the founder and president of Orfin & Associates. Mr. Orfin provides his top three tips for how business owners can stay afloat if a second wave hits.

Grow Your Cash Reserves

According to Dan Orfin of Orfin & Associates, building your cash reserves is going to be key to making it through a second wave. Cash reserves are the amount of money a business has set aside to use if their cash flow is interrupted. Many businesses were vastly underprepared for the first wave of the pandemic, with many having as little as two weeks worth of cash reserves on hand. In anticipation of a second wave, businesses need to be a little bit more prepared and do everything in their power to increase their cash reserves as we gear up for the Fall and Winter.

Prioritize Spending

It is critical for businesses to be operating as efficiently as possible. In terms of finances, this means not spending any money that they don’t need to be spending. Businesses should be reviewing their budgets and cutting anything that isn’t absolutely necessary. Examples of this include running inventory down to small quantities or negotiating contracts to get extensions on payment deadlines. Whatever it is that you need to do, you should be doing it to ensure that you’re only spending money on critical goods and services.

Consider Switching to Remote Work Permanently, Says Dan Orfin

For those businesses that went virtual when the pandemic began, Daniel Orfin advises them to continue operating remotely as long as possible. If your business is struggling financially in any way due to the pandemic, it’s best to keep your office doors closed until you feel financially sound. Don’t simply open the office up again just because your city or state announces it’s safe.

Assuming your employees have been able to get their work done to the same degree from home, it’s best to continue this trend. In the long-term, having a virtual office is much more cost-effective. Not only do you forgo building rent and operations costs, but you can avoid the additional costs of cleaning and sanitation that come along with reopening an office during COVID-19. Daniel Orfin claims that if there is any part of the virtual work environment that isn’t running smoothly, invest the time now to try and fix these problems.

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