The coronavirus pandemic has brought with it numerous challenges for businesses. From “shelter in place” orders and closed restaurants to canceled conferences and travel bans, the pandemic has dealt a major blow to the economy. Combine closures and social distancing with supply chain interruptions and changing consumer behaviors and the effects of the pandemic continue to wreak havoc. In such uncertain times, it is important to have a plan in place to help minimize your financial loss. Here are five tips for protecting your bottom line during this economic downturn.
Assess the Situation
The first step in protecting your bottom line is assessing your business to determine where it is financially at this time. From there, you can figure out what steps need to be taken. Critically assess what risks and challenges you are facing and think about the main problems you need to deal with first. For instance, if your employees cannot come to work are they able to work from home? Do your remote employees have the tools needed to do their job from home? Is there still a way you can deliver to your customers? Think about the biggest factors that will affect the day-to-day operations of your business and create a plan to address those needs first.
Communicate with Customers and Clients
While it’s normal to proceed with caution before starting new projects, that doesn’t mean you can’t still reach out to staff and customers. It’s important that you don’t leave your staff and customers in the dark during these times. Be sure to communicate any data and information you can provide and let them know what steps you are taking to help them. Send regular emails and updates to keep everyone informed and updated with the latest news. As for customers, seek new ways to serve them despite the current challenges. For example, expand online offerings or provide home delivery services to help you stay afloat until things can return to normal. These measures can help you safeguard your financial stability during this pandemic.
Invest in Work From Home Technology
Your employees are the backbone of your business and without them your daily operations will cease. For this reason, it is important to invest in the right tools and resources to help your employees do their job from home. While most people likely have a computer and an internet connection, they might not have secure Wi-Fi networks, collaboration tools, or internal communication programs that are necessary for remote work. In addition to providing tools, be sure and offer round the clock IT support for employees as they learn to navigate these new waters of remote work.
Take Control of Your Cash
Now is not the time for frivolous spending. Those free lunches and snack carts may have been a wonderful incentive for employees but tough times call for tough measures. Be intentional about every dollar you spend and cut off all unnecessary purchases. Never make financial decisions without top-level approval and make sure everyone understands where any cash is going at this time. Put together a 30,60, and 90-day plan for cash flow projections and be prepared to borrow money if needed. Try to figure out where any losses might be coming from and stop them immediately. Reduce any areas where you can and reallocate money to other areas that might be more important at this time.
Create Something New
Times of crisis are often the perfect times to pioneer something brand new. This could be your chance to create a new product or service that you would have never thought of before. For example, many businesses began experimenting with contactless service and delivery options as well as virtual conferences and meetings. If you learn to adapt to the current situation and how to respond to the changing needs of your customers, you are doing more than just protecting cash flow. You will also be strengthening your brand for the future.