While the COVID19 virus is still wreaking havoc across the whole world, there are thousands of businesses that are suffering owing to difficult financial situations. For some businesses, there were huge losses. For some, even though they could keep their doors open yet they are still dealing with a severe cash crunch.
In a situation like this, it is obvious that there will be issues of debts too. Maybe you have taken a loan for your business establishment which is yet to be paid. Or maybe you have got some B2B services in credit and you are not being able to pay them owing to the rapidly decreasing sale. So, in such predicaments, surviving the pandemic can feel like the biggest challenge ever. How can you do that? Take a look at the following points to know more.
Follow the Thriving Businesses
For any business, especially the smaller ones, it is necessary to follow another peer in the market who had started with similar resources like yours and made it quite far. The same goes for this situation too. While the maximum number of businesses is crumbling down, there are still those who have not only adjusted really well with the “new normal” but also are thriving currently, while adjusting to the changed customers’ behavior. If you have a peer like that in the market whom you can look up to, you need to follow what they are doing right.
Set Priority Payment
You surely want to be in a position where you can remain financially sound. But as the pandemic is already making it difficult, your next best shot is to set priority payments for your business. If there is a bank loan, take care of it first. If your creditors have appointed a commercial collection agency, then talk to them and let them know how you are setting priorities. This way you can cut some unnecessary costs while ensuring you pay everyone properly.
Are you closing the operation of your business? Are you changing location maybe for less amount of rent? Or are you falling behind for payments due to some personal loss as the virus is claiming lives too? In any case, it is necessary that you keep the gate of communication open. Even if you are not paying at this time, ensure that you are staying in touch with the creditor or the agency of debt collection service they have hired. This way they will also think of you as a reliable associate.
Be Open for Alternatives and Settlements
The situation might not get better anytime soon. So, you cannot delay the payments for an indefinite period of time. Be open to different alternatives. It might require you to sign another contract. Or your creditor or the collection agency might ask you for a settlement. This way, remain open and make payments in installments provided you have a constant resource of money.
No Credit Policy
As a small business, while you are not in your best shape, it is necessary that you change your customer policy too. If you have provided your customers with products and services in credit, then this is the time when you have to put an end to it. Don’t offer any product or services for credit. Make sure you are getting your money on time as you need the regular cash flow now more than ever so that you can avoid calls from debt recovery services.
Last but not least, you have to focus on your sale more. Yes, the situation is adverse and it is not helping you in any way possible. But you have to make the most of it right now. And for that, you need to be more creative and increase sales. How your customers are buying now? Have they gone online? You can do that too. You don’t even need a fully functional online store. Facebook and Instagram let you set up your business there too. For getting more sales, offer discounts or goodies.
So, now as you know about this small business survival 101 guide, what are you waiting for? Follow these ideas and stay afloat during the global pandemic.