The Coronavirus pandemic has created a slew of unique challenges for entrepreneurs. With the closures of non-essential businesses, shelter in place orders in effect in many states, and customers who are typically out shopping opting to stay at home, this is a particularly difficult time to remain in business. Utilizing the strategies below can help you to keep your company afloat amidst the pandemic.
Decrease Your Expenses
Find ways to decrease your expenses while your operations are altered due to the crisis. This might include things like ordering less stock, returning unsold products, and putting capital spending plans on hold until the situation resolves itself. It is best to keep your employees as your highest priority and only lay off staff if absolutely necessary. This will safeguard your company in the future when the economy reopens and you need knowledge and loyal staff to help you recover.
Talk to Your Suppliers
Chances are that your suppliers are also being affected by the shift in the economy. See if you can negotiate with your vendors and come to a mutually beneficial agreement that allows you to continue your partnership even during these difficult times.
Explore Alternate Revenue Streams
While your in-person sales might be down, the pandemic and stay-at-home orders might actually be unique opportunities to discover and utilize other avenues of marketing to your customers. For examples, restaurants may see a drastic increase in to-go orders if they offer takeout. Online shopping is also on the rise since so many people are at home. Ask yourself how can you reach your ideal audience online and take steps to market to them in new ways.
Produce High-Demand Items
According to Accounting Web, if your business has the ability to convert production to high-demand items such as masks, hand sanitizer, or disinfecting products, you may have an opportunity for additional revenue.
Take Advantage of Low Interest Rates
Interest rates are extremely low right now, meaning that relying on a credit line may be a good option for your business. Before applying, make sure you have a plan to pay back what you borrow.
Follow Up on Accounts Receivable
You can also collect any past-due bills to help even out your ledger and provide a little bit of extra wiggle room in your budget.
Utilize Government Assistance
The Senate recently passed the CARES Act, a $2.3 trillion dollar stimulus package designed to help the economy recover during and after the COVID-19 crisis. As part of the act, many small businesses quality for low interest-rate loans. You may also be able to receive assistance on a local level and may even be able to defer your tax payments.
Buy Out Competitors
If your business is in a good financial position, you may be able to use this opportunity to buy out competitors and expand your business!
Thinking about your business goals long-term is a must during this transitional period. While COVID may present challenges that may seem insurmountable in the moment, there will be a time when the pandemic subsides and the world returns to business as normal. Keeping your company afloat now and planning for the aftermath of the crisis will ensure that you can stay in business and serve your customers for years to come.
