March 16, 2020

CUT THE BUDGET - NOW!!!

Your CFO just video conferenced with you from her home ... where her eight year old pup is busy tearing into a t-shirt left on the floor.

Business is down 30%, and she's afraid you'll be out of business if this "virus-paranoia" as she calls it continues into the summer. Your forecast suggests this will continue longer than into the summer.

She's run a profit-and-loss statement, assuming you end the year down 30% on the top line.

Ouch.

She also knows that she can't demand layoffs because nobody will buy from a brand that fires people because customers aren't buying because customers may be dying.

So she's come to you.

She's looking at the Ad Cost line.

She thinks that thing needs to be at $5,000,000 this year, not $10,000,000.

She wants you to cut the living daylights out of your marketing budget.

And she doesn't want sales to disappear.

Good luck!

If your CFO is smart, the last thing she's going to ask you to do is cut the marketing budget. She knows that if you cut the marketing budget, your p&l will change:

So yes, you saved the p&l. But you lost $8,000,000 of FILE POWER on top of the $15,000,000 of File Power that the virus took from you. This means that next year will be lousy.

Yes, you're trapped between a virus, a CFO, and a looming File Power issue. It's up to you to triangulate around the issue. And you can do it!!



P.S.: Somebody is going to tell you to stop your customer acquisition efforts. That "somebody" is 100% wrong. You'll need all the new customers you can get so that when the hounds are released and the world returns to something closer to normal you'll have a business.






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