5 Tips for Keeping Your Business Afloat Despite COVID-19
Several months have passed, but the global economy hasn’t recovered yet to the damages the coronavirus pandemic has brought. Today, many businesses are still temporarily closed, while others struggle to keep their business afloat. As companies receive fewer clients, their revenue and flow of sales are reduced as well. Due to that, several companies have made adjustments with their work setups, including doing their business tasks remotely. However, this setup cannot be applied to all.
Here are some finance-related tips that all businesses can do to adjust to the situation and thrive despite the pandemic:
Tip #1: Reduce your sales cycle time
Sales cycle time refers to the length it requires for you to close a deal or sales process. Since you cannot yet assure the growth of your sales in the following months, cut down expenses by streamlining your sales process. If possible, try reducing it by 25 per cent to save high costs and time. Doing this will not only save you tons of expenses but also will help ensure to keep your customers’ trust and loyalty to your brand.
Tip #2: Review your payment terms
To ensure that you will be paid on time and in full, consider reviewing and adjusting your payment terms if needed. For instance, you can collect deposits or request advance payments to your customers and debtors. However, make sure to discuss this process to any concerned individuals ahead of time to give proper consideration, especially during this pandemic.
Tip #3: Examine your gains and losses
Manage your cash wisely, especially this time, by reviewing your gains and losses. Be open to making adjustments based on the current situation. If you can afford to cut costs in one particular thing, like shipping courier, to a more available option, do it. Cutting costs will help you ensure that your business will stay afloat, knowing the sales in the following months cannot be assured. If you have temporarily shifted to remote working, consider allocating or investing your office-related funds to other necessary uses or avoid spending it.
Tip #4: Enhance your brand reputation
Since sales are tough for any businesses, consider spending your time in marketing your products and services much better. Review your company’s strengths and weaknesses and see which you can alter to add value to your brand and provide better services to your clients. Although you may think that it is inappropriate or unnecessary at this time, you will reap its benefits once the economy has recovered. That is because it will improve your brand awareness and reputation significantly, keeping your brand known and recognisable to many audiences.
Tip #5: Set realistic financial goals
Create realistic financial goals ahead of time to ensure a good net worth of your business for the years to come. Base your decisions on the current situation and access, which can be improved or cut down in response to the changes you have encountered. Doing this will get you ahead of time against your competitors and will ensure secure and stable finance. For further assistance, consider consulting a business accountant to help you put things into perspective.
Keeping your finances safe and stable during this pandemic can be challenging, knowing that sales are decreasing. As a business owner, you should be quick to decide and act based on the situation. To keep your business afloat, consider adjusting particular systems in your company to cope with the financial damage. Cut down costs, if needed, and made financial plans ahead of time.
If you are looking for a small business accountant in Gold Coast, get in touch with us today. Throughout the years, we aim to help small businesses grow and thrive through our expert and reliable end-to-end accounting and bookkeeping services.