Keeping a business going is hard enough at the best of times, but when you’ve got a global pandemic to contend with, things really start to get challenging and can test you in every kind of way.
The truth is, none of us are immune to hardship in this difficult and challenging period of our lives. There are plenty of businesses out there who won’t make it through to the other side, which is a hard pill to swallow. Let’s take a look at what you need to know about keeping your business afloat during COVID-19.
1. Be Honest with It
When we’re faced with tough financial times like the ones we’re living in right now, it can be all too easy to put the blinders on and pretend that it’s not as bad as it is. However, while this might help you cope with the financial stress temporarily, ultimately, it’s just going to put off the inevitable.
This is why it’s important to face the truth when it comes to your business right now. Ask yourself the hard questions, like which clients aren’t likely to continue with their contracts? Who is indispensable when it comes to your employees?
2. Keep the Cash Flow Going
Perhaps one of the most challenging aspects of keeping your business afloat during COVID-19 is keeping the dream alive through cash. Every business needs cash flow to be okay, so if you’re not getting that right now, you’re going to crash and burn pretty quickly.
Just because customers aren’t coming through the door doesn’t mean that bills don’t still need to be paid. This is where you need a temporary alternative to hold you over until things smooth out again. Consider a title or short-term loan, and look up ‘how do title loans work’ to find out more. According to Jim Eyraud from LoanCenter, the number of loans to keep businesses afloat has increased significantly since the Coronavirus outbreak.
3. Manage Your Debt Wisely
The reality of the situation is that you’re probably going to have to put the business in more debt right now to keep you going for the time being. However, this doesn’t mean that you have to drown it in debt. It’s all about managing your debt wisely right now so that you can get back to making a profit as soon as possible.
Similar to the short-term loan we talked about above, try to find as much financial support that you can apply for right now. Don’t worry about the debt – as long as it’s good debt, and isn’t going to burden you with excess interest, it will be worth what it does to keep you afloat.
4. Diversify
One of the best things that you can be doing right now is thinking about all the different ways that your business can make money right now, even if customers can’t purchase your product.
The world is full of companies that have diversified their growth structure, which has allowed them to stay strong through tough times. Consider how you can continue to reach your customers right now, even though they can’t reach you.
5. Be Honest with Your Suppliers
A lot of people are going down right now because they are supplied stock and product by their suppliers in advance, with the intention of making that money to pay back by the end of the month. Of course, now that we’re all in the midst of a public health crisis, suppliers are starting to come out of the woodwork, wondering how they’re going to pay the bills themselves.
Owing money on materials and supplies is what you need to focus on, as opposed to getting the rent paid. That can come later. It’s important that you feel like you can have an upfront, honest chat with your suppliers about what the future looks like. Coming up with a deal that helps them out as well is going to go a long way in surviving these times.
6. Talk to The Taxman
Of course, one of the first things that hit a business hard in tough times is the tax that they might not be able to pay. However, the tough times we’re living through are unique in that they’re affecting everyone.
This means that the taxman is aware of this and is working hard to meet businesses suffering a loss right now in the middle. Instead of getting overwhelmed by your upcoming tax bill, do everything you can to get in touch with them and talk about your situation. There’s a good chance that they will have leniencies that can be temporarily applied to make things a little easier.
7. Act Like the Government Has Dropped the Ball
In crises that affect everyone like the one we’re living in, it can be easy to think that the government is going to come to the rescue and solve all of your problems. The trouble is, however, is that the government can let us down, and their resources can only stretch so far.
This is why it’s worth not waiting around for the government to get the ball rolling and be in control of your own destiny. Act like you’re going to get no help from the government. This way, you will set your business up for survival, whether you get help from the government or not.
8. Put Everything Into Existing Clients
You can’t expect every customer to hang around and stay loyal, which makes the ones that do even more valuable. This is why it’s vital that you make their stay worth their while.
From throwing in a free lunch to giving them a decent discount, there’s a lot you can do to show your appreciation for those clients that have chosen to stay by your side. They are a big part of what will get you through this challenging time.
Keeping your business going through the coronavirus pandemic is going to be one of the hardest things you’ve ever done – but it’s not impossible. Arm yourself with the right tools, and you just might be okay.
