No one should expect a global pandemic to be gentle manage on life and economy! Going by that rule, COVID-19 has become the harshest reality of 2020. It started with infecting humans and gradually resulted in deaths, more infections, slow recoveries, and an economic slowdown. Businesses of all kinds found it challenging to estimate and plan their next move. And with global lockdowns and stay-at-home orders, companies and organizations had to pass through a phase of business lull and uncertainty. When situations are becoming better currently, it is essential to take charge of your business and finance, to make better expansion plans.
How does Robert Trosten ask business owners to go about their finances?
Your business and profits must have taken a beating because of COVID-19. Chances are you had to cancel out on a few of your business development plans, which in turn affected your profits and sales. How are you planning to move forward? If you’ve been mulling on that question for a while, finance experts like Robert Trosten have a few useful suggestions to help you navigate your business finance scene with caution, expertise, and vision.
- Assess your immediate financial status
You’ve started the business after a period of the gap. Hence, take the time to assess your finances. Check on the sales that you made before the lockdown and the minimal sales you made during the lockdown if your eCommerce wing was functional. Is it enough to sustain your business for the next months, till such time you make increasing sales? If not, then chances are you need to approach an investor. That way, you can pay for the required daily expenses, pay rent, bills, courier costs, and your staff and employees.
- An emergency fund
Businesses of all sizes should have their emergency funds. No one knows how the pandemic would end. Also, there’s no data on whether it will surge up as the year ends. Keeping in mind the uncertainties that might arise, it is essential to have an emergency business saving and fund. If you have one and think its inadequate, try to keep adding to it as you resume your business. Use this fund only when you thinkit’s essential.
- Clear off the debts
Do you have an outstanding business debt? If yes, it’s an excellent time to clear that. As your business makes slow progress, take time to clear out all the business credit card debts and the like. It will help you have a clean business credit record that will act in your favor when you want to take up a business loan to expand your business.
- Get sensitive about pay cuts
In an extreme situation, you might have to let go of your current employee strength and keep only those who are indispensable. But make sure you get sensitive about manage declaring the pay cuts. It makes sense to allow your employees to work on a contractual basis. That way, their pay will be based on the business your company is generating and that will ease down your financial burden to a great extent.
These are a few ways to address your financial situation during COVID-19. It will help you to streamline your finances and make good progress.