7 Practical Steps to Ready Your Business for COVID-19 - Our Guide
The coronavirus disease (COVID-19) outbreak is a threat to many businesses, and this could place their future in serious jeopardy.
In these trying times, you should prepare your business for COVID-19 by considering taking comprehensive risk management strategies. These will help you to not only navigate your way through the crisis but also to prepare your journey toward recovery.
Read the list below to learn more about ways to gear up your business for the virus.
Update your financial statements
Make informed decisions in this challenging situation by getting access to the most up-to-date information on the state of your business finances. Look over your financial statements and keep them up to date.
Assess the financial implications of COVID-19 to your business
To determine the financial impact of COVID-19 on your business, you should first figure out what likely will happen to your business in terms of sales, staff availability, supply chain, and finances. You can also list possible impacts on your business, make informed projections, and identify possible strategies to mitigate those impacts.
Check the financial state of your business
Knowing the state of your finances and performance of your business is key to determining the actions you need to take to place your business in the best possible position in this time of crisis. To accomplish this, you need to analyze your financial statements through financial ratios.
Create a new budget
The budget you created before the virus outbreak may no longer be relevant to your business, which is why you need to work with your business accountant to re-do your budget with the possible impacts of COVID-19 in mind. Take note of potential unthinkable scenarios that may happen and consider how each of them would impact your cash flow.
Improve your cash flow
Once you find that your business will struggle with cash flow in the future, act promptly to improve your cash flows.
Prepare a cash flow forecast and update it regularly. Doing this will keep you informed about potential cash flow problems you would face and you can act early to address them.
Boost your online sales
Buyers purchase more online nowadays due to the virus outbreak. See this as a business opportunity and start selling or increase how much you sell online.
Boost your online sales effectively by working with your business accountant to check different online selling and delivery platforms and find the one that best works for your business. You may also consider talking to your suppliers and urge them to explore digital solutions to the delivery of products so they can reduce the need for face-to-face contact.
Communicate with your suppliers
Production and transportation of goods are now limited because of the virus outbreak. To address this, talk to your suppliers about their ability to deliver the products you need for your business during the crisis.
If the production of your suppliers may slow or stop, consider getting alternative suppliers, including local suppliers even if they are more expensive. Source them as soon as you can and begin your price negotiations early.
Navigating your way through this COVID-19 crisis while handling a business is challenging, but with proper planning and preparation, you can conquer this tough time and potentially grow your business.
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