Here is simple, yet effective financial advice during the Coronavirus scare for a small business
- Reflect on your expenses – what can you live with? What can you live without?
This is the time to understand how frugality is important in your business, whether it’s through this pandemic or normal day-to-day. If you have ‘luxury expenses’ such as expensive quoting software such as Qwilr, Customer Relationships Management (CRM) software such as Agile, or even fancy online conferencing software such as Zoom, ask yourself; is this a make it or break it type expense? Instead of Qwilr, just keep your proposals on a Google Doc. Instead of Agile, save your emails and send them manually. And instead of Zoom, add your customers to skype. These are all free alternatives that can help save you hundreds of dollars a month.
Now, what about the expenses you can’t live without? These could be your invoicing software, your project management tools to manage all your projects, or if you’re in the service business, the tools you need to fulfill work orders. These are the expenses you can’t live without and are necessary to stay afloat.
2. Flexibility is key
Now’s the time to accommodate your customers as much as possible. Try your best to have all meetings online or on the phone with wonderful follow up emails. If your customers are on payment plans for your services, try to work with them to reduce their monthly payment and extend their payment plan. Only do so if your business’ cash flow allows it. You are a business owner too and you need to protect your finances just like they do. If you can get by with a 10 percent reduction, offer that to the clients in need. They will thank you later.
3. Be transparent with your staff
Allow your staff to know where you’re at. Try to keep them as motivated as possible. Do not panic. Keep them in the loop if you think there may be layoffs. The best advice; treat people like you want to be treated and your retention will increase. This time is all about sticking together so honesty is your best policy here.
4. Looking Ahead to the Future…..
Of course, we are all banking on this pandemic to end sooner than later and that most importantly, there are no more casualties. But, a lot of us are asking ‘What will our future look like as small business owners?’
Right now, it’s important to assess your cash flow and do your best to understand what your financial projections are for the next few months.
Stress testing your business isn’t an easy task, and it truly does take a special person to own a business, let alone get through this difficult time as a business owner. Using this time to reflect on the health of your business is important for today and for many times to come. Take this time to understand how important it is to have a savings account, to keep debt low, and to always be on the lookout for government grants on how to keep your Debt-to-Income at a minimum.
The key point here is that preparation is the golden ticket for the success of all small businesses. Learn from this and your business will thank you!
We hope that this financial advice during the Coronavirus was helpful for you as a small business owner. If there’s anything we can do for you at this time, please let us know. We are a team of designers, marketers, coders, and IT specialists that are able to help you during this hard time. All you have to do is contact us and we’ll do our best to assist you.
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