The global pandemic caused by COVID-19 has upended several aspects of our lives. One of the badly-hit sectors is small businesses. Many small business owners took a huge financial hit due to the lockdown measures. Now as cities slowly reopen, business establishments are still reeling in from the effects of the lockdowns.
Nobody anticipated the gravity of the virus until it was already right in front of us. As a small business owner, it is easy to feel discouraged from the incurred losses these past few months. But there are ways in which you can protect your business. All it takes is making the right moves based on the cards you are dealt with. Here's how you can make your business pandemic-proof.
1. Cut back on expenses
Now that money is tight, there's no better time to go over your business expenses and see which ones you can do without for now. There might be some luxuries that you have been shelling out money for but you don't necessarily need them during this time. Cost-cutting is not for the faint of heart, but at times like these, it is one of the smartest ways you can keep your business. Even multi-million companies do this when the situation calls for it. Be prepared for the changes it might cause your business, but it is a necessary step to secure the future of your company.
2. Create a payment plan
During times of uncertainty, debt is one thing you don't really want to deal with. However, debt settlement is something you need to pay close attention to so you can avoid falling into a bad credit standing. Review your current cash standing and talk about a payment plan with your loaner. If possible, ask for an extension. Paying your loans now might now be doable, but not paying it would be detrimental to your credit standing and could ruin your chances of acquiring a loan in the future.
3. Change and adapt
There's nothing wrong with coming up with new ways to keep the cash flowing. Changing up the business and adapting to the new normal may just be what you need to save your business. Being able to adapt is one of the ways businesses can stay afloat during these difficult times. Adapting is always part of the game in any kind of business.
4. Safeguard your cash
There's no business when there's no cash. Protect the cash flow of your business by coming up with ways on how to encourage your customers to support your business. Maybe you can think of a new mode of payment that is easier and more flexible or roll out easy payment terms. Anything that keeps the cash flowing in is a wise move.
5. Touch base with your loyal clients
Now is the best time to reach out to your loyal clients. Your customers who have been supporting your business for years know what you can offer. Maybe you can offer them discounts or special rates to encourage them to keep on coming back. Check on them once in a while and ask them about how they're doing. Being on their side helps maintain the relationship. At the end of the day, any business is built on the loyalty of its customers.
Being in this pandemic is something a lot of us did not anticipate. But if there's something past global crises has taught business owners is that things will eventually lookup. So be the creative and resourceful entrepreneur that you are and make the right moves.
Looking for ways to fill in the gaps in your cash flow? We at Business Finance Townsville offers different kinds of financing loans for your business needs. Give us a call and let's talk about how we can help make your business grow!