If you're one of the millions of small business owners trying to financially survive the current pandemic, you know how difficult things have been.
After all, it's stressful that your business’ future may depend on your ability to navigate shrinking profits and a current financial climate that's mostly out of your control. It’s no question that being a business owner during uncertain times can be challenging.
Here are a few tips to help you manage your finances and keep your business afloat during a pandemic.
1. Prioritize Your Spending
There are probably some things that need to be removed from business spending during the pandemic. Prioritizing your business spending will become more and more critical as the economy moves forward.
Now is not the time to order extra stock that might sit on the shelves for months. Instead, focus on priorities such as keeping up with the utilities and paying employees on time. Even if you're presented with a fantastic deal on inventory or supplies, do your best to hold off for the immediate future. It's impossible to know for sure when exactly your sales volume will pick back up. You'll do better by saving the additional funds for important expenses rather than buying stock that can't be moved immediately.
If possible, come to a mutually agreed upon solution by negotiating with vendors. Our blog post outlines ideas to help cut costs with this strategy: How To Negotiate With Lenders and Suppliers During COVID-19.
2. Figure Out Ways To Earn Additional Revenue
Small businesses that are surviving the pandemic have figured out ways to bring in extra revenue. You should do the same.
Some small businesses have decided to offer online classes where their customers can learn a specific skill, subject or trade. The class participants pay a small fee to gain online access. This is added cash right in your pocket. Others have put their time and resources into setting up and running online storefronts where they've been successfully moving inventory.
Start thinking of creative ways that you could make additional cash flow even while your business is restricted by the pandemic.
3. Organize Your Bills
With all of the changes in the world during the last year, you might be having a difficult time remembering payment due dates for your bills and obligations. This could easily lead to wasted late fees and poor relationships with those you do business with.
Because of this, it's important to sit down and make a detailed list of what you need to pay and when you need to pay it. Then, set a calendar reminder on your smartphone for each payment's due date to help you meet payment deadlines despite the many distractions business owners face.
4. Save Every Chance You Get
Living through a pandemic is definitely not the time to start spending frivolously. It's important to save any amount of money that you possibly can. Go through all of your expenses with a fine-toothed comb to find out exactly where your money is going and why. You'll be surprised by how many ways you can immediately start scaling back spending.
It's also vital to have all of your personal and business finances completely separate. Combining them will cause a host of problems, including possible tax issues, to avoid.
Talk to your financial advisor or accountant for additional ideas on how you can save more money.
5. See What Relief Program Options Are Available
There are currently many different relief programs for small business owners that are having a difficult time during the pandemic. If you're struggling financially, take some time to look into what funding programs, debt relief, or small business grants you may qualify for. It could really help you get through the current struggles.
6. Stay Away From Retirement Accounts If Possible
It's tempting to dive into our personal retirement accounts when our small businesses need some financial help. But it's not the best idea.
There's a good chance that if you can hold out just a bit longer, sales and revenue will begin to pick up again. You really don't want to be stuck with a depleted retirement account when that happens.
You're Going To Get Through This
You've probably been worried about your business since the pandemic began. Thankfully, there are some proven ways that you'll be able to finally survive it. By implementing strategies that relate to the pandemic, you can find success as the economy improves.
About the Author
Mikayla St. Clair is a Public Relations Specialist for Channel Supply Experts. She loves to write informative articles and share her knowledge with the readers.