Thrive To Survive: Cash Flow Tips For Small Business Owners During COVID-19
Larger businesses are managing to stay afloat because of the strong presence they have developed throughout the years before COVID-19 took the world to the edge. For the smaller ones who operate in local areas and are not exactly multinational corporations, surviving and thriving during the pandemic has proven to be a tough ordeal. With widespread movement restrictions, business closures, and the looming fear of the virus shrouding everyone’s judgment, the backbone of the Australian economy suffered a large hit.
Due to tighter profit margins and fewer reserves for cash compared to their larger counterparts, short term closures affect small businesses in so many ways. If you are an owner of a small enterprise that is struggling to stay afloat during these difficult times, here are some cash flow tips to help you and your business thrive and make it through:
Plan and Make Financial Adjustments
An important part of the operation for any business of any size is the concept of cash flow forecasting. Using planning to set your budgeting and expenses to predict when you might run out of cash is key to staying afloat for as long as possible. Most accounting apps have cash flow tools within their software toolbox, which makes management easy.
Another thing that helps financially is cutting down on expenses by working with suppliers better. Cutting out non-essential expenses such as unnecessary subscriptions, as well as communicating with suppliers and landlords to inform them about your situation is important. When this is done, you can arrange for repayment or payment arrangements to get settled after your business has picked up traction again.
Continue Efforts Despite Crisis Conditions
By taking the proper precautions to ensure the safety of yourself and your staff, try to operate throughout the new normal as much as you can. By working from home, some small businesses have been able to survive and make things work for their customers even without physically being together as a team.
You can also use delivery and curbside services if you offer retail goods or are in the food industry to make transactions contactless while your physical stores are at a pause.
Make sure you communicate with your customers to address their needs and wants, as this can help them make decisions about coming back to your business for their purchases. This way, you build trust with them and they continue to offer patronage despite the world’s condition.
Keep your social media accounts up to date and show your customers what you continue to offer and how you are working to protect them from the dangerous pandemic around. Be sure to answer messages from emails, social media, and live video services.
Bump Up Your Marketing Process By Being Creative
While the whole world has fears of the virus, it doesn’t hurt to add a brand campaign that makes people smile or laugh once in a while. Making people smile during these times is a surefire way to get them to love your business, so use social media to market your products well, but also remember to be sensitive in the end.
You can also start a crowdfunding campaign to raise funds for local businesses that need help, such as those local stores that people loved prior to the lockdown that are now in trouble. People love to help, but most people don’t know how to start helping. Giving them an avenue to do so will ease the burden and in turn, help you and your fellow small businesses stay afloat.
It is by no means an easy world for many people nowadays. With so many people losing their jobs, and many businesses shutting down, the future of business and the economy is uncertain. It helps to keep finances in order through the services of small business accountants who can help maintain financial stability for as long as possible.
For the best small business accountants in the Gold Coast, New Wave Accounting can assist your business in traversing the harsh field of the COVID-19 economy. Trust us in giving your business the best treatment in order to stay afloat during these difficult times.