With lockdowns and economic slowdowns prevailing across the world due to COVID-19, entrepreneurs are finding themselves dealing with unexpected changes in their business. Maintaining a steady financial base, then, becomes the primary focus. At a critical time like this, entrepreneurs need to take a hard look at their financial conditions and make the right decisions for their business.
1. Preparing for the future
During this period, there are a number of changes in terms of restrictions in operations. Therefore, being vigilant and prepared for all possible worst-case scenarios is a must. If your business is one that could possibly be more in demand due to its product type or service provided, preparing for a proportional increase in demand is advisable. Most importantly, business must be conducted while keeping in mind that even if the lockdowns are relaxed, it is likely to be months before business resumes as usual.
2. Cutting cost
As you plan for the future, take a look at your current operation methods and check for unnecessary expenditures. The more unnecessary money spenders you eliminate, the more resources you have in order to prepare for unexpected changes in the market. Keep what is essential for operations, cut costs on luxuries. If possible, try and find economical alternatives to the options that you already have, provided that the quality of your product or service is not affected. Saving cash during this period could prove to be crucial for your business in surviving this rough patch.
3. Check for opportunities to grow
It's often observed that slow economic periods can be accompanied by a period of growth for businesses. While your primary focus should be on survival and sustenance, keep an eye out for possible opportunities to grow your business. Being patient is important, as the right opportunity may occur during this slowdown, or even a few months after normalcy is attained. This could also be an incentive to save more and cut costs, as it will allow you to invest more once you find the opportunity to do so.
While most businesses are worried about how they will continue operations during this period, you could take this chance to innovate and be rewarded for it. By being innovative during this period, you can give yourself a competitive edge. You also have a chance of maintaining a steady cash flow for your business, all the while reducing your spending.
5. Focus on digital marketing
This period of lockdown and social distancing will result in most people using the internet as their medium for communicating with the outside world. With the aggressive number of people using social media, the use of a well thought-out digital marketing campaign could potentially get your business the visibility it needs by your target demographic. It is essential, now more than ever, to focus on digital marketing.
6. Focus on existing customers
While a good digital campaign will help in generating an interest with new possible clients, it is important to focus on your existing customers, especially if you work in the B2B sector. Your existing clients are your primary source of consistent cash flow, and losing them, especially right now, could be detrimental to your business. On the flip side, if you show your clients that you care for their needs, and are able to deliver on your promises, you build on their goodwill, which leads to better business relations in the future. Helping your clients and solving their issues now will help your business sail through this storm.
Cash flow is the lifeblood of any business. While maintaining a steady cash flow during this period will be a test for entrepreneurs, those who are able to do so will easily reap the benefits. Your ability to lead your business through situations like these will be the deciding factor on how well your business will fare.
Khushboo Jain, Co-Founder and COO, ImpactGuru.com
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