By Shiv Nanda
A lot of businesses took a hit since the coronavirus pandemic started. Amongst them, small businesses bore a lot of brunt of it. While many chose to shut shop, you can survive this pandemic with smart planning. By managing your finances during these challenging times, you can keep your business running.
Let us look at 5 ways you can deal with the impact of the COVID-19 crisis on your business.
Look at Your Financial Statements
COVID-19 is changing a lot of things rapidly,which may impact your business. You need to respond to it as quickly as you can so that it doesn’t affect the company a lot. To do that, you need to understand how your company stands financially.
Your company’s financial status can limit your business choices or expand them. You need to update your financial statements and know your up-to-date financial position to make smart decisions.
Moreover, your current financial statements will also help you understand if you need any financial aid like a personal loan to combat the effects of the COVID-19 crisis.
Understand How Different Aspects of Business May Be Affected
The coronavirus pandemic may affect different verticals of your business. So, you need to understand how your business can be affected from all angles and make a strong business plan. Communicate with your staff, suppliers, and consumers since they all have a stake in your product or service.
Their input can help you better understand the different scenarios that your company can face. This will enable you to come up with possible solutions to deal with them. Discuss how the situation can affect sales, finance, supply chain, or even availability of staff.
It is no surprise that you would have a budget plan for your business. But, it wouldn’t be a stretch to say that you probably did not account for a crisis like the coronavirus pandemic.
So, you need to shift gears and make a new budget because you cannot work with the old one. Consult with a professional to understand different business problems and solutions and the financial changes you need to make.The new budget should help your business run through the pandemic and after that as well.
Focus on Improving Your Cash Flow
Getting business may prove to be tricky when everyone isextra careful of how they spend their money. However, you need to find ways to maximise the cash flow sooner than later.
Consider stock management, asset management, credit management, or getting financing through loans.
Boost Your Online Sales
If you are an online business, look for more ways to sell online. Promote digital marketing and set up a system to handle online orders. If you didn’t accept orders on your website earlier, now is the time to do so. You can bring in considerable money through online sales.
These are some solutions to the small business challenges that you may face during this unexpected time. Don’t panic and think through the changes that you will have to make now so that your business thrives later.
Shiv Nanda is a financial analyst works with MoneyTap, India’s first app-based credit-line. He helps and educate people on various financial topics.