When disaster strikes, the road to recovery can feel overwhelming—especially for small business owners struggling to keep their doors open. Managing cash flow effectively during this critical time can mean the difference between survival and closure. That’s where the Kentucky Small Business Development Center (SBDC) comes in. Our team of experienced business coaches can help you develop a 13-week cash flow projection, giving you a clear financial roadmap to stabilize your business, prioritize expenses, and plan for long-term recovery. Don’t navigate this challenge alone—reach out to the Kentucky SBDC today and take the first step toward rebuilding with confidence.
Step 1: Assess Current Cash Position
✅ Cash on Hand: What money is currently available?
✅ Pending Income: Are there outstanding customer payments, insurance claims, or disaster relief funds?
Step 2: Identify Cash Inflows
🔹 Sales Revenue: Project realistic income based on recovery progress.
🔹 Disaster Assistance: FEMA aid, SBA disaster loans, state/local grants.
🔹 Fundraising/Community Support: Crowdfunding, local donations.
🔹 Gift Cards/Prepayments: Advance sales to boost cash flow.
Step 3: List Essential Expenses
💡 Prioritize Must-Pay Expenses (keep business running)
🔸 Rent & Utilities – Try to negotiate deferrals or reductions.
🔸 Payroll – Decide if you can keep all staff or reduce hours.
🔸 Supplies & Inventory – Buy only what’s essential to operate.
🔸 Loan & Debt Payments – Request extensions if needed.
Step 4: Fill the Cash Flow Gaps
🛑 Cut Non-Essential Costs: Pause anything unnecessary.
🤝 Negotiate Terms: Ask vendors, landlords, and lenders for flexible payment plans.
💰 Seek Additional Funds: Look into grants, loans, or community support.
Step 5: Monitor Weekly & Adjust
📊 Update Weekly Cash Flow: Track actual income vs. expenses.
🔄 Reallocate Funds: Shift spending based on new priorities.
📢 Communicate: Keep customers updated on business recovery.
Goal:
Keep the business alive, cover expenses, and plan for full recovery.
Small adjustments weekly = long-term survival!
KENTUCKY SMALL BUSINESS DISASTER RECOVERY GUIDES
Navigating A Business Crisis
Practical strategies for Cash Management, Pricing & Cost Containment, Supply Chain Management, and Marketing to help small businesses effectively navigate through a Business Crisis.
Managing In Times Of Financial Difficulty
This checklist is designed to give guidance to businesses on how they can manage through difficult times. Small businesses need to take action when the going gets tough. While there is no single cure-all, there are many steps a business owner can take to manage through the difficult times and position the business for future growth.
Reopening Your Business After A Disaster
Following a disaster, the immediate reaction of many business owners is to reopen their business as soon as possible. However, a post disaster environment is anything but ‘business as usual’ for you, your employees, key suppliers and customers.