In a crisis, people always come first.
Businesses are built and run by people. As a C-level leader, losing the trust and confidence of your people during a crisis can worsen the situation significantly.
How you treat people in a crisis will be remembered—long after the crisis has passed.
From leading multiple organizations through financial and operational crises, here’s what I’ve learned:
- Be transparent and timely in your communication—good news or bad.
- If you don’t yet have a clear plan, say so. But also share what you do know, and what people can focus on while the plan is being developed.
- Deliver bad news with a credible plan for what’s next and what you need from your team.
- Hone your message and communicate it clearly, consistently, and constantly.
- Be visible, available, and open to input. That doesn’t always mean in person—video calls, phone, or even a thoughtful email count. Respect and openness build trust.
Also: you can’t lead others if you can’t lead yourself. There are plenty of resources out there—especially during Covid-19—that focus on managing your own physical and mental health in a crisis. Use them.
And Then: Focus on Cash
The future of your business starts with cash.
- Do you know how much cash is available in the bank right now?
- Can you make your next payroll? What about the one after that?
- Do you have a credit line or other source of temporary funding?
- If you use it, how will you pay it back?
Too many business owners—especially in high-growth or stable times—don’t have clear answers to these basic questions. That’s a major risk.
If you’re confident in your cash picture, great. If not—or if you know someone who isn’t—please read on and share.
Here’s a simple weekly cash flow forecast you (or your finance lead) can build in a spreadsheet:
Cash in the bank today
+ Cash coming in (receivables, funding)
– Cash going out (payroll, rent, other expenses)
= Cash at end of week
That’s it. Round numbers are fine. Don’t overthink it.
Here is an example spreadsheet:
In the above example:
- The company is a SaaS business, but the model can be customized to fit any industry.
- They pay bills monthly, which simplifies cash management.
- A shortfall in the second week triggers a $150,000 line-of-credit draw—then repayments begin by month-end.
Run the numbers for at least a month, and create versions for different scenarios. If you can’t make payroll—or pay it back—you’ve got a problem. Better to see it now than too late. Short term cash planning should go out at least 12 weeks.
What If There’s a Shortfall?
Some short-term moves:
- Accelerate collections—especially from large customers (carefully)
- Delay non-critical vendor payments
- Delay payroll with transparency and a recovery plan
- Temporary layoffs or furloughs—with clarity and respect
- Permanent reductions—as a last resort
You may have other options. But the point is: you can’t act if you don’t know.
This blog’s goal is simple: help leaders become more proactive in managing through crisis.
If you remember nothing else, remember this:
Start with people. Know your cash. Lead with clarity.
Up next: Adapting Your Business for Post-Crisis Success.