We all know that Coronavirus has impacted the businesses of all shapes and sizes. And reports suggest that the situation is impacting the small businesses even more adversely, unless they tread through this tough time carefully. For small and medium-sized businesses, the next couple of months are going to be very difficult. So, if you’re a small business owner, you’re up for an uphill battle.
In this article, we will discuss some of the things that small businesses can do over the next few months to try and mitigate this difficult period.
5 Things Small Businesses Must do to Survive the Coronavirus
For this, you have to remember the 5 C’s. These 5 C’s can help your small business survive this pandemic situation.
#1 Cash
Those companies who are financially strong are better able to fight this pandemic situation. This is because the coming few months are all about cash. If you’re a small or medium-sized business owner, you should protect your cash and prevent the wasteful overuse of cash.
Try to get new contracts and collect your issued invoices in order to secure the company’s business and cash.
Small businesses are directly dependent on their clients for their cash flow; they don’t have the luxury of being supported by deeply pocketed investors or over gracious banks. They don’t have acts of great force to support them financially. So, the first thing you really need to do is make sure that you’re collecting on all of the cash that is owed to you by your customers. Even if some customer is not able to pay the full amount, get whatever partial amount you can. Every cent matters.
#2 Customers
Customers are really important for small businesses in these times. It’s a great time for you to focus on getting really close to your customers. So think and write down the names of your top customers and talk to them, especially if you’re in the B2B environment. This is important because you need to find what your customers want from you, what’s important for your customers in this situation, and how you can help them right now. Make sure that if there’s anything that they need and want, you’re ready to help them with that. This gets you close to your customers and also higher up on their list of vendors that they need to pay first. The businesses who can help their customers face this difficult situation will stay with their customers for a long time.
#3 Credit
In this time, you need to have adequate lines of credit for your business. Talk to your bank or financial advisors and see if you can get a short term lending facility that can help you deal with no revenue or no profit situation for the next few months.
This time is gonna be the most critical for your business. And if you are not planning your cash flow, you’re going to find yourself wanting. If you are not financially strong or prepared, you’re gonna find yourself in a difficult place in coming months. So, see if you can get yourself a short term overdraft, or something to tide you over in this very difficult time ahead. Avoid credit card debt; the interest will kill you.
#4 Colleagues
The next way is to talk to your colleagues. Talking to the people and ask for suggestions from your colleagues, your team members, your employees, etc., will help you to be calm, focused, and determined for work. And, when you talk with your colleagues, there is a great possibility of discovering new ideas and strategies as well, which will further help you tackle this situation easily. As one wise man said, two heads are better than one, so make sure that you talk, take advice, and suggest plans with your colleagues.
#5 Communication
If you have external stakeholders in your business, it is strongly suggested that you get ahead of the curve and you talk to them. Talk to them and plan with them what your company is doing about the Coronavirus and how are you responding and mitigating the risk of the Coronavirus. This will be helpful to reinforce the confidence of your customers in doing business with you.
Conclusion
We all are dealing with this current situation and trying to fight with it in our own ways. But these are some of the tips and tricks that help you survive in this pandemic situation. We wish you and your business to do well. We hope that these five tips will help you and your small business to survive this pandemic.
For more information on how you can better survive in this pandemic, you can contact us.
