What is your DO NOTHING cost ?


Elasticity will be the new Mantra of corporate 

If something this COVID19 taught every corporate it is need for elasticity. It is always there but we never felt pressing need for it. Every company has a fair understanding on how much it costs to scale up X% or scaled down Y%. But no company ever needed to calculate the need for "Do NOTHING". What will be the cost of operation if we are in DO NOTHING mode ?

Whether it is small business or big business now there should be a  DO NOTHING (pandemic)  clause. Like the US and China trade agreement have a clause, if there is a pandemic this trade agreement is NULL and VOID.

What is the minimum cost you have to bear if there is no revenue source and how long you can sustain. Every financial adviser tells you to keep 3-6 months expenses in savings. Like that every company should know the DO NOTHING cost and keep that as cash flow. Just like stress test for banks each corporate need to test this new financial standard.

In the software field there is something like enterprise license. You will keep paying that amount even if you use million times or single use. Now more than ever there is a need for 
updating that clause in the legal agreement, if there is usage less than threshold we will pay for usage otherwise it is enterprise license.

Companies now have to think about their physical assets, rents, leases, licenses and contracts that will accumulate even if the demand is near zero. What is the DO NOTHING cost for your family, your city, county, local /State/Federal government and your company ?



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