Your landlord might be willing to temporarily lower rent for a few months, especially if you offer to pay interest for the favor when business picks up. ![]() Other companies could understand your situation if they’re going through something similar. Look at Your Contracts and Insurancesĭo you plan to continue leasing property for your business? What kind of contracts do you have in place for payroll? You might be able to cut some of those costs by renegotiating contracts. You can always adjust your budget again when business picks up. You’ll gain economic momentum as you get used to operating with your new budget, so when the pandemic dust settles, your new way of operating won’t feel like such a significant shift. You can take more steps now to lower expenses and increase your revenue to raise your chances of scoring a sound financial future. Using services like invoice factoring to improve cash flow.Searching for vendors that could save you money.Putting a temporary hold on company retreats.Cutting subscriptions and services that aren’t helping you grow.Paying smaller debts as quickly as possible with the debt snowball method.Finding low-cost marketing opportunities with big results.Depending on your business type and model, this could look like: Now is the perfect time to perform a business budget analysis, cut unnecessary expenses, and see where you might have room to grow your revenue. Grants and government loans can help you stay afloat now, but future financial gains depend on a healthy budget. Reconfigure Your Budget for Now and the Future Online ordering with in-store pickup has increased by 259% in August 2020 from August 2019. If you aren’t on board with going fully online, you might consider adding a delivery or customer pickup option to your business plan to cut costs and cater to customers. If you haven’t yet thought about making your operations as digital as possible – or, at least, with less of a physical footprint – you could be hindering your business’ potential for future growth. Data suggests that department store sales will likely drop by 60% by the end of 2020, while online sales will grow by about 20%. Some families continue to quarantine at home or refrain from going out as often as they did before COVID-19. Employees can work from home, and office supplies no longer become as necessary on a large scale.īusinesses nationwide are beginning to open more, but that doesn’t equate to consumers visiting as much as they used to. Giving up a physical office can save your business on overhead costs and other expenses required for operating your business in person. How will a business survive during COVID-19 and after? Here are a few financial tips that could help: Reduce Overhead and Go as Digital as Possibleīusinesses that move from physical spaces to digital spaces could be the ones to beat in the future. Financial Strategyįinance is a primary consideration for businesses that COVID-19 have affected. ![]() It also takes a long, hard look at business finances, operations, and employee and customer strategy to find growth opportunities after the pandemic. Still, about 25% of small businesses don’t believe that financial relief will help their business enough to remain open.įinancial relief alone isn’t enough to pull businesses out of the deep waters that COVID developed. Since then, the government has released financial help in the form of the CARES Act. In April 2020, CNBC reported that 7.5 million small businesses in America could potentially close because of COVID-19 effects. From mapping out a new financial strategy to overhauling your current business operations, the work you do now could take your business successfully into the future. The real work starts behind the scenes with business leaders. The pandemic has brought businesses to their knees, fighting to keep customers and finding new ways to stay innovative and grow.īusinesses can survive during the COVID-19 pandemic, but it’s going to take a lot more than government-driven financial aid to do it. No matter the size of your business, it probably has been caught in the crosshairs of COVID-19 in one way or another.
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