The Boulder SBDC works with hundreds of small businesses every month. We fully understand that as a small businesses owner, you are frequently absorbed in the day-to-day activities of your business. However, in these changing times it is more critical than ever that you find some time to pause and reflect on your underlying business proposition. Many of the basic assumptions that have supported business for years have changed. It’s a new playing field and we must all learn new ways to move forward. The ACT self-analysis assessment is a guide to assist you in identifying the most crucial areas for consideration. The assessment is not designed to be overwhelming or comprehensive. Not only would such a design would be too daunting for many small business owners, but additionally, many of the issues are complex problems with no clear, single, correct answer. You need to be prepared to move forward on this basis and adjust your course as conditions change and new information becomes available.

In order to reach the long-term, your business must survive the short term. The life blood of a business is cash. Without cash, your business cannot survive. The Cash Flow Stress Assessment asks you to estimate the number of months that your cash can last under current operating conditions. This analysis requires a conservative estimate of short-term revenue, a careful consideration of expenses and a review of any possible short-term sources of cash, including the disposition of underutilized assets. Now is not the time to be overly optimistic. While we shy away from using the term “worst case,” you should take a hard look at your cash flow assumptions. If you need help with this analysis, the Boulder SBDC has a free cash flow model and can also direct you to more robust models that are available for a fee.

You are also asked to assess your current financial reporting capabilities. Accurate financial information will be needed to navigate through the crisis.

The Sales Reality Assessment requires you to take some time to think about who your current customers are and how they are likely to behave in the coming months. This may require you to identify how much you really know—or don’t know—about your current customers.

You are also asked to consider if there are other customers who may be a market for your current product or service. Will these new customers use the product in the same manner or perhaps for a different purpose? How can these new customers be reached?

The Product/Service Assessment asks you to think about your current product/service itself. Is it still something that will be in high demand in the changing environment? Could you easily change or modify your product/service?

The Operational Assessment requires you to consider if you have the right tools to execute a new business strategy. Do you have the right people on the team? Do you have the physical assets you will need? Have you established the right distribution channels?