Here are a few tips:
First, as you begin to plan and budget for next year, you don’t have to look at it in a pre-COVID/ post-COVID lense. Utilizing the pre-COVID data will likely result in inaccurate projections. Reconsider the lense you are looking through and then begin to plan.
Review the processes and procedures that will be your high impact drivers. Identifying these drivers will help you identify the actions you need to take to increase your profitability. How do you identify these drivers? Cash flow forecasting.
Forecasting your cash flow helps you to get a clear picture of your cash runway. It also helps you identify where you might have future liquidity issues. When you create an organized cash flow forecast, you are able to test best-case scenarios, worst-case scenarios, and likely scenarios. When you manipulate the forecast to plan for these scenarios, you can identify places you are able to cut costs, where you need to invest more, etc.
With all of the uncertainty surrounding the effects of COVID-19, it may be a good idea to begin forecasting and planning only a few months at a time. These forecasts will help to inform better decision-making regarding the evolving demand.