The year 2020 has been and still is difficult on a business level for professionals around the world. The pandemic of COVID-19 has created an unstable situation with many financial issues. According to bestmoneymoves.com, in April 2020, more than 20% of business owners have altered their course, by limiting their expectations, targeting more realistic goals, and monitoring their performance data closely. It is highly possible that this percentage has risen since then.
Therefore, big companies, freelancers, and small businesses have to find ways to cope with the current financial issues. Read on for the basic steps you need to take in order to fight the financial strain we are living under, in the best possible way.
Assess your current financial state
First and foremost, before resorting to hasty solutions, you need to have total control over your financial matters. You need to gather all the necessary financial data, take a step back and evaluate the current situation. The prospects may look unfavorable due to bank accounts without much cash or a lot of payments that have not been settled by your clients. In a COVID-19 impacted business market, both cases can happen to the majority of startups, freelancers, and small businesses.
At this point, proper financial management on your part is essential, in which we will dive deeper into the next step. You should know how many resources you have available and which assets can help you stay afloat. It is also imperative to review your financial emergency plan. Last but not least, you should have full knowledge of the income you have already lost as well as the bare minimum amount of money that you need to survive financially.
Focus on your expenses
However, before resorting to any funding applications, you need to have full control over your business costs. By using software with expense management features like Elorus, you have the opportunity to know direct and indirect expenses as well as project costs. Departing from that basis, you will be able to decide which expenses can be cut down. Any needless business-related spending like production costs, utilities, and office supplies (for businesses that are back to their offices) can be minimized. You should also renegotiate with suppliers and concentrate on alternative types of marketing.
If your business is under extreme financial strain, you may need to reduce payroll and leave your office space behind. Embracing remote work is a strategic move and it can help you prioritize business actions that can bring revenue and stabilize your financial state. You may even consider collaborating with other brands to combine services or products. This way, you may receive more publicity and attract customers by setting discounts for both businesses.
Stay on top of the latest business market news
At the same time, you need to be aware of the present governmental action plan since formal, decisive action is needed in cases of universal crisis. So, be sure to check out what your country’s governmental provision to relieve businesses is. However, it would be best if you did not overfill your head with too much information. Read what applies to your business needs and avoid fake news and catastrophological theories. This kind of news is not helpful and will certainly not solve your current financial issues.
Apply for financial help
The next logical step is to apply for grants in order to lighten the financial burden. Regardless if you are in the worst financial state, getting financial aid will help you deal with pending business expenses. It can also work as a safety net since these funds can be set aside for a greater emergency in the long run. After all, you cannot know how long the COVID-19 crisis will last, and having a more concrete backup plan can possibly save your business’s future.
In addition, there are several funding options like the ones that SBA (U.S Small Business Administration) offers. For example, the Paycheck Protection Program which expands existing loans, the Express Bridge Loans which gives access to up to $25.000 to employers that already have received funds from SBA, and the SBA Debt Relief. So, you just need to find the programs that you are eligible for and apply.
Do not forget your existing clients
In times of crisis, businesses should also support their clients with valuable information on how to cope with the current COVID-19 situation, discounts, and better deals. This way, you will strengthen the relations with your clients since they will feel appreciated even during the toughest periods. Plus, you will still be getting income, lowered but still incoming. The current financial issues should not divide people. Instead, we must find ways to unite having as our ultimate goal to survive financially.
Plan your business's financial future
The post-COVID-19 time can also be a chance for reorganization and well-thought planning for the future. Most importantly, you should think of ways to safeguard your business. You may also find time to do some market research. Think about taking your brand further and making your services/products more appealing and useful to attract new customers. You can even develop a better financial emergency plan. This way, you will be better prepared in the event of a more extensive crisis in the future.
In a nutshell,…
…you share the current financial issues with millions of companies around the world. The need for well-thought and effective solutions in order to relieve professionals from their financial burden is immediate. Therefore, explore all the possible funding options, rearrange your economics, and do your best to get out of the financial strain.