The worldwide pandemic was an unexpected event that brought casualties, including an economic state this generation is not prepared for. According to Fortune, over 100,000 businesses permanently closed after what seemed to be a temporary move to adhere to precautionary health measures. As a result, the income streams of brick-and-mortar establishments came to an abrupt halt, resulting in mass lay-offs.
However, letting go of loyal and hardworking employees isn’t always the way to go. If there’s anything that COVID-19 taught the masses, it’s learning how to adapt to sudden changes. Your business’s financial aspect may have seen its share of ups and downs, but saving money can go more than both ways.
Keep Your Business Steady In A Shaky Economy
Your business may have reopened, and you’re looking for ways to retain it at your current financial state. Luckily, you need not look far as there are practical ways to keep it running.
- Take Advantage Of Fintech
Financial technology has been around for decades, almost as long as the Internet business-boom. Many are providing software for efficient business management that saves time, money, and workforce. Financial companies also took to the world-wide-web to offer support for businesses in dire straits, with some offering business loans that you can apply for any time you need it.
If you’re an exporter waiting for payment from your importers, you may want to explore export finance. It’s a type of business financing that you can secure to pay off your business’s operational costs, bridging the time gap from shipping to when the importers can pay for the goods. Export financing helps you gain leverage when you’ve offered attractive terms to your importers as a mutual way to survive the pandemic.
- Seek Out Business Financial Advice
You may wonder if paying for financial advice may cost you, but in reality, the price may come even higher if you didn’t. Being a business owner doesn’t necessarily mean that you also have financial expertise. Business financial advisors guide your business at different stages as you take the reins to where your business can grow and become profitable.
So how do you know if you can trust them? They’re not merely strangers that you pay off to help keep you on your toes. Their practice is a small business that they guard and strategize over, especially when they were also affected by the coronavirus scare. It’s safe to say that your success is also their success. They’ll sit you down to discuss what you can do to keep your grip on finances when income flow downsizes to a drip.
You can trust that financial advisors will give you expert advice on your personal finances as you navigate your business through these trying times as well.
If you’d rather not discuss it with an advisor, discussing initiatives on preserving cash reserves will greatly help while working through the pandemic. Governments have temporarily withheld the payment of taxes to help save businesses. Your team, the investors, and the board of directors will need to work on a plan to commence repayment of those taxes. That also includes other payables once the lockdown has been lifted.
- Workout Temporary Deals
Business operations also include the people you work with and are the backbone of your enterprise. Your employees, suppliers, landlord, and customers are the ties that keep your business alive and well. By analyzing the financial aspects, you can pinpoint areas where you must make adjustments on payment terms for you to keep the business afloat and those who work for you.
If you have an established partnership with suppliers you can trust, you may want to ask for extensions or grace periods on payment terms. They’re likely to work a compromise with you for the benefit of their own business. If you’re renting a space, kindly ask for some extra time as well while you’re taking the steps to keep your business running.
If you’re running an ecommerce business, which has proven steady because of the restrictions on public places, stocking up on essential items, bundling and offering discounts can sweeten the deal.
- Execute New Ways To Deliver Products and Services
Traditional businesses are at the front when the pandemic struck. Because of the coronavirus’s contagious nature, strict social distancing measures are put in place at public locations such as restaurants, supermarkets, amusement centers, and more. These are typically where people gather to fulfill basic needs. So, if they can’t come to you, work out plans so you can come to them.
Offer a delivery service to those who’d rather stay at home or are pressed for time. It’s a simple but practical move that opens you to more business. If you’re in the retail and food business, you can establish a delivery service for those at home or their respective workplaces. It will take your employees’ efficient direction to keep a tight schedule and careful transportation to make it work. You can also take to social media to advertise your products and services for wider exposure. Include different ways for customers to reach you by email, phone, instant messaging apps, or through the company app if any.
- Consider Financial Assistance Programs
Financial assistance comes in many forms, and not all of them are loans. If you have a strong following of loyal customers who may want to help you keep the business running even during the pandemic, crowdfunding may be an option you can utilize.
Crowdfunding is a casual way of raising funds through anyone who believes in your brand, project, or cause. You can set up a campaign, and those who have access to the details may choose to donate a sum that they’re willing to part with.
You may also be eligible for loan programs designed for small and medium businesses. Various governments around the world have set up financial aid for those heavily impacted by COVID-19. Lending companies may also offer business loans with flexible terms to help you cope with the drastic changes.
The financial aspect is only one wide expanse to explore to keep your business open. With the solutions above, don’t lose hope and give up on your dreams just yet. Various livelihoods have been affected, but scales have been tipped repeatedly.
Running a business is a long journey of careful planning and management, compromises, and deviating when things don’t happen your way. The options above may be under your control or may require the assistance of the right people, but if you’re open to networking, you’ll help not only yourself and your customers but also others in the same boat as you are.