SURVIVAL TIPS FOR SMALL BUSINESSES

With life looking very different these days, businesses need to adapt to a new normal in the coming months. The sudden changes can feel overwhelming, so let’s look at some survival tips to help businesses stay afloat through these challenging times.

UPDATE FINANCIAL DOCUMENTS

In order to make informed business decisions in these difficult times, it’s important that you have a full picture of your business’s state. One of the most effective ways to do this by looking at your latest financial statements. Your cash on hand is especially important in times like these because cashflow is likely to be interrupted by the crisis. It’s important, to re-do your budgets with new assumptions.

FACE REALITY

You will need to identify your key employees who are essential to keeping the business going and set them up with the tools they may need to keep your business productive working from home. This could mean arranging for them to have laptops, software, and the necessary cybersecurity they need.

If you can afford it, let this time be spent for upskilling your workers whose tasks can’t be done remotely. There are plenty of free and paid resources online that you can point them towards. If cash reserves do not allow this, then it’s time to face the music that you may have to let them go.

Cashflow is certainly going to take a hit in the coming months. Even when things begin returning to normal, there’s no telling if the fiscal stimulus can resuscitate the economy quickly and effectively.

MANAGE YOUR REMOTE STAFF EFFECTIVELY

The new normal is managing your staff from afar. This can be challenging if you’re used to having personal face-toface conversations with your team.

To make sure that your business performs as efficiently as possible, it’s important to keep your staff’s morale high even in these dark times.

Check in with your staff regularly about their physical and mental wellbeing and keep a roster of staff who will be on-call in case of business-related emergencies such as communicating with foreign suppliers. Logistics is already in disarray, don’t let communications inefficiencies drag it down even further.

TALK TO KEY SUPPLIERS

If your business involves working with suppliers, it’s important that you can assess whether the lockdown is going to affect their services. Talk with them about how to move forward. During this time, you can also begin to research for alternative suppliers.

In these uncertain times, anything can happen. Even your most reliable suppliers can get caught up by the changing landscape of the economy, so it’s better to be prepared.

MONITOR YOUR NUMBERS CLOSELY

Before the lockdowns, your business may have already a level of independence from you as a businessowner. However, the new order of things may be too new to expect the same level of independence. It’s important to treat your company in this temporary disruption as a start up once again.

DO A QUICK STOCKTAKE

You’re going to want to get rid of slowmoving stock that you still have. The economic disruption is surely going to diminish the demand for it even further so instead of letting that go bad or letting it take up space, sell it off at a loss via promotions, or give it away.

Decrease orders for perishable stock that may not last the projected 6 months of lockdown. If, on the other hand, there is stock that you deem to be in high demand during crises like this one, increase your orders for that particular stock.

MANAGE DEBTORS AND CREDITORS

If you have debtors, make sure you stay in contact with them and ask if they’ll be able to pay you what you’re owed.

However, you need to be considerate as they are also experiencing the effects of the lockdown. If they are unable to pay, arrange a payment plan that’ll be suitable for both your business and theirs.

Do everything in your power to invoice promptly for services rendered and goods delivered. You want to get paid as promptly as possible in these situations so do not let the delay be on your end.

It’s also important to pay creditors in a timely way because they’re also hit hard by the crisis as well. Getting the economy running, is a communal job and we all have to participate to the best of our abilities.

MANAGE SPENDING

Cut unnecessary spending. Seriously review your advertising strategies as your typical platforms may no longer be effective in the new climate.

You may also be able to save a few dollars by reducing work hours for your employees so you can keep service standards high even with reduced work hours. You can also cut costs by letting go of contractors and other staff.

Lastly, you may also want to take a look at selling off or leasing some of your unused assets.

SEEK PROFESSIONAL HELP IF THINGS AREN’T GOING WELL

If, despite all your efforts, you’re still having trouble keeping your obligations like making payroll, paying taxes, and repaying your creditors, it’s important to understand that you may not have all the solutions. Keep your accountant in the loop and work closely with them throughout the coming months, as well as your bank and take advantage of everything the government is offering for financial lifelines at the moment. Your accountant should be across the latest offerings and where you can claim assistance to stay in business.

THIS WILL PASS, KEEP GRINDING

In times like these, we tend to lose sight of the things that got us into business in the first place. Giving up is easy. But you didn’t go into business because it was easy. It’s important to remember that this crisis, like all the others that came before it, will pass. Businesses are blessed with the responsibility and the honour to keep our country’s economic engine turning and those who can bunker down and keep things operating will be in a strong position when we are on the other side of this.