We’re are all experiencing uncertainty right now, some are panicking and others are terrified that this is the end of the life they have become accustomed to. We are in some really hard times and possibly come serious end-times for any industry. Here are some tips on how to survive the COVID 19.
Plenty of SMEs will not see the end of this financial year. There are no easy answers, and for some businesses, no answers at all.
Do your cash flow and forecast
It is vitally important to plan ahead in the good times and now during the COVID 19. Doing your cash flow and taking the time to make a forecast will help you prevent your business running out of cash. You will not be able to pay your suppliers and will not able to obtain new finance. You will become insolvent. …
As a result, it is essential that you forecast (predict) what is going to happen to your cash flow to make sure the business has sufficient funds to survive.
Read more about Cash Flow and forecast: https://ndpbookkeeping.com/cash-flow-and-forecast-the-advantages/
Check the cancellation clause in your terms and conditions
Start the hard conversations now and don’t be afraid to say NO. Even the hardest negotiations are done by being reasonable people. It is very important that when this is all over that you and your supplier can carry on doing business together.
Read more: https://www.smartcompany.com.au/business-advice/strategy/covid-19-business-survival/
Great advice: https://www.moneyweb.co.za/financial-advisor-views/coronavirus-strengthening-your-financial-position-in-times-of-crisis/
Have the COVID19 chat with your suppliers
You will owe money to two sorts of organisations: the business suppliers you work with every week, and large ogres like property owners (although there are some heroes out there right now), banks and the tax man.
Ask your business suppliers to help you survive, in whatever way they can, so you can be a good, ongoing customer in future.
Chat to the tax man
SARS will be willing to work out a repayment plan with you, they would prefer you to stay in business rather than crash completely. If you go out of business then they lose as well.
Don’t wait to be rescued
The whole point of owning a business is having control over your own destiny. Deal with your own affairs as if there was no help coming. If it does come, it will be less and later than you’d hoped. Treat it as an unexpected bonus if you get help but act as there is no superhero coming to save you in the final scene of your COVID-19 movie. It’s up to you.
Come up with other ideas
Find ways to bring in money now even if it is not the big deals you are accustomed to.
Is there something else you can do until business picks up?
Keep you existing clients happy like nothing else
There are still people with money. And you have a ton of excess capacity, both in staff and whatever else it is you do. Now is the time to throw in the freebies, the room upgrade, the matching belt, something to thank them for being a lovely customer and spending cash with you instead of wasting it on another packet of toilet paper.
Now is the time you can make them a customer for life.
Staff plans
If you have no revenue and no prospect of any revenue, you have to be realistic. No matter how much you say your people are your greatest asset, no matter how much you love them as people, their long-term needs are not served by your business going under. Then they’re all unemployed, and you’re not going to be starting a new business any time soon.
You can start by asking them if they’re okay about agreeing to a reduced number of days per week so everyone keeps their job.