The COVID-19 pandemic is affecting businesses of all sizes. 65% of businesses report a decrease in revenue due to the virus. Without proper planning and preparations, many businesses will close.
Fortunately, there are ways your business can survive the pandemic.
This includes looking at your leadership strategies as well as honing in on your cash flow by finding new revenue streams, selling in an age of social distancing, and keeping customers engaged.
Read our COVID-19 small business survival guide and continue keeping your business up and running.
It’s easy to feel stressed when your cash flow is running thin. But you should avoid panicking.
Stress can clog up your mind, blocking out innovative ideas. Try and keep a clear mind. Always try and balance the positives and negatives and don’t make important decisions on a whim.
Make a Three-Month Financial Plan
Even though we are opening up the economy, the process will be slow. There’s also the possibility of a second wave that you should prepare for in advance. That’s why you need to map out your expenses for the next three months.
Common expense examples include:
Office rent and utilities
Employee salaries and benefits
Other expenses that you need for day-to-day tasks (such as technology, machines, etc.)
From here, find ways to spread the costs using the funds you have now.
Limit your spending during these next three months. Take this time to cancel any subscriptions or payments you don’t use. You can also downgrade any services, if necessary.
Since most businesses spend the most money on their office space and staff, prevent hiring staff members, and switch your full-time employees to part-time or even freelance.
If you can break your lease without repercussions, switch to full-time telecommuting, or opt for a co-working space when the economy opens up.
Find Different Sales Opportunities
This is the time to be innovative and find different ways to sell your products. This may be an opportunity to adjust your sales strategy to new buying habits or maybe releasing new products altogether.
A great example is moving your business online. If you own a brick-and-mortar commerce store, this is the perfect time to switch to a digital medium.
Take Advantage of Financial Resources
There are many financial resources available for businesses, both offered by the government and by financial institutions. Governments worldwide are offering stimulus packages for businesses.
You can also take out a loan. This is a handy option if you don’t have the capital to cover basic funds. There are many types of loans out there for businesses of all sizes.
Business Survival Is Possible During and After the COVID-19 Pandemic
Does business survival seem like a dream in the wake of the pandemic?
There are many ways you can return to normal business operations without losing integral parts of your business, such as your staff. For a capital boost, you can apply for a stimulus grant, or you can consider taking out a loan to cover your expenses until your cash flow picks up.