2020 has not been a good year for business owners so far. Indeed, while a few, very select companies have managed to thrive during the COVID-19 lockdown and subsequent recession, a great many more have suffered instead. And though some small businesses may have been able to “weather the storm” up until now, they’re likely facing new challenges ahead. With that in mind, today we’re going to share four savvy ways that small business owners can balance the books and take control of their financial situation moving forward. Check them out here:
Make New Projections
Obviously, COVID-19 and all of its fallout has affected business projections across the board. You can no longer rely on analysis, predictions, or goals you might have developed in, say, January. That’s why you should closely review your current financial state, and work to create new, accurate models that reflect how the next few months will likely go for your business. The clearer picture you have of your own business, the easier it will be to make smart financial decisions.
Seek Out Cheaper Alternatives
When facing financial difficulties, many business leaders may feel the impulse to start cutting down on spending as much as possible. This instinct is understandable, but it is ultimately ineffective. After all, if you slash your entire marketing budget, you’ll struggle to increase your visibility and attract new customers –– at the precise moment when you need them most. As such, it’s best to seek out alternatives to high-priced products or services as opposed to getting rid of them completely. For instance, instead of paying for expensive concrete barriers, you could try renting more cost-effective plastic models. Or rather than eliminating funding for a technical support department, you can move some of those services in house.
As we touched upon earlier, businesses need to connect with as many potential consumers as possible right now. This means that they should do everything they can to promote their current marketing and sales efforts. Launching an email campaign just for your best customers could be a great way to generate a financial fillip. Additionally, expanding your services to include pick-up, delivery, or remote assistance can, in some instances, allow a business to stay above water.
First and foremost, small business owners should look to secure emergency funding from banks that are offering special relief for companies affected by COVID-19. Beyond that, though, there’s no shame in asking for assistance from others in your community. If you’ve built up a strong consumer base, then they might just be able to help you out in this jam. Just make sure you pay their generosity back to them with exemplary service and special offers when you can!