Every business has been impacted in some way by COVID-19. Whatever the impact has been on your business, things will eventually get better. Be resourceful and utilize any downtime you may have to prepare to come back stronger than before. This crisis has taught all of us very valuable lessons. Turn those into positive ways to impact your business.
Always stay up to date on the latest pandemic news, government updates, and industry-specific happenings. Doing so will help you uncover short-term solutions, take care of yourself and keep an eye on the future.
The most crucial factors we have addressed through the COVID-19 Pandemic and have been a real savior in handling our business effectively.
- First off, DO NOT panic; you are not alone. Seek the advice of people you trust and then think things through carefully.
- Be proactive and respond, do not be reactive. Deal with what is in front of you and that which you have control over. Let the rest go. Worry and fear never solve the problems and can exacerbate them.
- Nobody wins if your business fails, so involve your partners and employees in the solution.
No one will manage your business as you do. You must stay active in day-to-day management. The outcome of your business is dependent on the decisions you make.
Preserve thy capital. Live to fight another day is priority #1.
Any business survival is based on trust and credibility on your clients and employees that you have been carried through many years, this is the time it works for you in your sustainability on the business market, considering the following aspects would be wise to avoid financial hurdles:
Cost monitoring: Always monitor your cost and get as lean as possible even when you are not having liquidity challenges. Also, keep an eye on your balance sheet. The better you manage your cash the better your business plans will work out.
Contingency planning: You don’t have to come up with all of the solutions. Seeking the advice of others and holding a brainstorming meeting can be very helpful. Work with your CPA, Small Business Development Center, financial institution, key employees, and even other business owners to come up with ideas. In turn, share with others what is working…and what is not working.
Quick decision-making: Never delay in making decisive decisions in times of trouble. And never be shy about seeking help from outside.
Communicate with customers: Try to communicate with customers and let them know that they and their reviews on your products matter. Improve and do the changes accordingly, if needed.
Internet: Go online as much as possible because it always helps to reach customers who we cannot tap through offline or other forms of marketing.
Keep striving: Keep striving to come on top of the industry of which your company is a part of.
Increase cash inflow: Keep your existing customers and look for opportunities to pick up other profitable ones. Double down on your best customers. Review your customers to see who the most profitable ones are and look at offloading those that aren’t.
Lower cash outflow: Reduce and slow down outflows of cash. Determine Business essential expenses. Determine your essential expenses. What expenses can be cut that will not negatively impact your business? Can some purchases be delayed? Are there ways to cut your utility costs? Even small expenses add up.
Staffing/Employees: Perform a critical staff analysis. Who are the key employees needed to maintain minimal levels of operation in “survival” mode?
Talk with your employees about them modeling a reduction in hours themselves. What is the minimum hours they can work and still survive? Cutting hours is often better than cutting staff. When you have these figures, strongly consider restructuring the way you create your weekly schedule to strike a carefully tailored balance between employees’ needs and workforce productivity.
If you have to lay off employees to save your business, do it fairly and tactfully, but do it.
Being better next time
There will be more challenges ahead. Be sure you are using this crisis to make you and your business better for the future. Because some impacts of this crisis have been more indirect, it’s important to document everything you are experiencing now. Take the time to think about the range of risks you have faced, how you’re handling them now and how you will manage them the next time.
We at Bengaluru Squad had experienced and handled most of the cases listed above and these details would be helpful to our business counterparts in handling business without risking the credibility and functionality.
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