The Coronavirus (COVID-19) pandemic has highly impacted not only the healthcare sector, but it has also caused the recession to our country’s economy. It is because the pandemic has prevented us from performing economic activities as effective as how they used to be done since we should all align with the physical distancing measures.
If you are an owner of a small business, you should be experiencing how this pandemic and its resulting recession has made it more challenging for you to maintain your business. The demand for your products and services may decrease significantly during this crisis, inversely proportional to the need to pay your workers and other substantial outcomes. Therefore, you must get to know the ways to maintain your business during recession.
THE MAIN SURVIVAL KIT IS YOUR CASH FLOW
It is crucial to remember that during a crisis, it becomes essential to get to know your cash flow and ensure it is in balance. This includes three main conditions:
- Reduce cash outflows – payout cash later
- Increase cash inflows – receive money sooner
- Make sure your team is more productive!
To achieve these conditions, here are at least five steps that can be helpful for you to follow during this on-going pandemic crisis.
5 STEPS TO ENSURE YOUR SMALL BUSINESS SURVIVES DURING RECESSION
Here are five steps to ensure your small business during recession:
LEASE OR BUY USED
When you do need to purchase essential items to support your business operation, whether it be furniture, special items, and others, try to lease or buy used goods where possible. During this down economy, it is again essential for you to limit your outflows as much as possible. Leasing or buying used products may help!
DO NOT SPEND TOO MUCH ON NON-ESSENTIALS
Make sure you cut out non-essential spending. Sort through your monthly expense before the recession – consider what things that will not bring too many impacts when you do not purchase them. Is your business paying for monthly magazine subscriptions not necessary for your operation? Are you changing your building’s decoration every month?
However, it is not that you should cut out everything – sparing some of your outflows for employees’ complimentary coffee, for instance, will do more good for your employees’ spirit and satisfaction rather than asking them to spend on their own. Remember not to be too harsh on this as well, where possible – don’t forget that you should also keep your existing employees and customers.
SATISFY YOUR EXISTING CUSTOMERS – SO THEY WILL STAY!
Your existing customers today may be the most crucial source of your inflows during this recession because they have already built trust on you beforehand. Remind them, today, why they have trusted you so far – maintain the business qualities that have attracted them in the first place. If you are known for providing low prices, do not increase them all of a sudden due to the need for more inflows!
Also, you can satisfy them by providing better customer service. Customers are kings to your business, so make sure to serve them well so that they will stay!
GIVE DISCOUNTS FOR PAYING SOONER
Remember that one of the conditions to maintain your cash flow is to be paid more and sooner. It means that it may be helpful to also give discounts to customers who pay faster and directly, especially when they are purchasing for larger quantities.
This is also to attract your customers to purchase more of your products because everyone does love discounts. Also, on the other side, you will also gain you cash more quickly for you to use for your business’ outflows. Quite a win-win solution then, right?
BE OPEN WITH YOUR EMPLOYEES, MAINTAIN SOLIDARITY
Lastly, take a look at your team! During this recession, you must maintain your high-quality employees so that you can together bring the business to survive this condition.
This can include being open to your employees about your conditions. Let them understand how this recession has been impacting on your business so that there will be a shared feeling of solidarity among your team to be able to maintain your business. Get them on the same purpose, so that they will as well work harder and be more productive for your business.
And this wraps the five steps on how to bring your small business to survival during these unprecedented times. Remember to keep your cashflow well-maintained, and you will most likely be successful in getting through business during recession. If you offer after-hours services, eg for plumbing emergencies or IT support, include a call-out number on your homepage. Let’s Contact Us or Request a Free SEO Analysis Today.