One question I pose to small business owners: "Do you have a six-month cash flow projection?" If not, you may have a difficult time determining how successful your business will be during this COVID-19 pandemic. A projection helps you maintain the relationships you have with loyal customers. It prevents the many problems resulting from a lack of cash.

I talk with small business owners who are struggling during this pandemic. One of the questions I ask is "Do you have enough in cash reserves to cover expenses for the next 30-90 days?" Why? These reserves are crucial to help you pay vendors and employees during a financial crisis. Here’s how to figure out how much cash reserves your business needs for the next three months.

In my work with small businesses I am familiar with how cash flow management can make-or-break a company. Simply stated, if you aren't properly managing the flow of your money, then you are setting your business up for failure. In this time of COVID-19, managing cash flow is more critical than ever. A new commitment to cash flow planning and management is needed.