14 May How To Survive The COVID Economic Crisis
Today we face unprecedented and economically challenging times. It goes without saying that each business needs a battle plan to survive the current economic hurdles.
There’s no doubt that small businesses will be the hardest hit from the current COVID-19 pandemic as bigger businesses have more resources and a better chance of surviving. So, how can small businesses survive the volatility coming in 2020? There’s no easy answer! But here are a few points to start implementing and planning at least for the upcoming months.
Keep Close to Your Accountant
There’s a ton of information out there that can be overwhelming to sift through and decide what’s relevant. Having a good accountant can help you decipher the jargon and cut through the noise to help protect the future of your business. Make it a priority to email your accountant, get to know them and heed their strategic advice and take note of their concerns. Your accountant will also keep you up to date with the latest information on the various relief funds possibly available to you.
Cut Down On Costs
Adjust your personal spending now! Don’t fall into the “let’s see what happens…” trap. Cut all the costs that you can NOW, reset your living standard to free up cashflow to be able to weather the storm.
As the saying goes, failing to prepare is preparing to fail!
Remember to have a look at your invoice terms and get your team collecting all monies that are due. Manage and conserve your cash flow and focus on signing new business. Have an online strategy in place to convert online interest into sales.
There are many resources provided by the South African government and financial institutions, so don’t get left behind! Many social responsibilities and initiatives have been developed to help small and medium sized businesses survive. In fact, more than R500-million is available through the Debt Relief Fund to assist businesses affected by COVID-19.
Engage With Your Stakeholders
Engage with your stakeholders (shareholders, employees, customers and suppliers) and collaboratively work together to reduce costs, defer payments and ensure long term survival. In times like this, communication is key! Work on maintaining good relationships on a professional and compassionate level with all your stakeholders.
Keep Calm and Take Care!
This can be challenging especially when cash is low but remember to take care of yourself in a way that works for you, and makes you feel your best!
So whether it’s eating well, and trying to get some exercise in, taking care of yourself will help you to keep calm and collected, which will also help you keep your staff calm and working from a healthier mindset.
A healthy mindset will make it easier for innovative ideas to solve problems. If faced with some challenging decisions, take time to balance yourself and your mind before taking any drastic decisions.