As the world grapples with the COVID-19 pandemic, businesses are put to the test. They’re running on long and uncertain timelines and dealing with significant cash flow problems. The virus has shut down cities, forced teams to go remote, brought travel to a halt, upended supply chains and curtailed the demand for everything but essentials. All of these are affecting businesses and impeding the revenue-generating capacity of organizations.
During times of great uncertainty, your company’s success depends on how you pivot and respond.
To make things easier for you, here are some tips for managing the cash flow of your business during these testing times:
1. Consider new ways to deliver your product or service
It’s time to adapt to the current situation and start getting creative to maximize the inflow of cash. How? Going online is the answer since you can no longer engage with customers in person.
Many dine-in restaurants and hotels are offering pickup and online ordering options. Gyms are offering virtual classes and expanding their customer base to kids while banks are introducing mobile payment schemes, business loan online and more.
Selling online can help you retain your existing customers, while also potentially opening your market to people beyond your geographic area.
2. Adjust your goals and strategies
It may not make sense to throw away years of strategy to move in a different direction. So, rather than adopting a ‘sit-and-wait’ approach, as a business, you need to adapt your goals and strategies and substitute/boost avenues of revenue.
Before you decide, pause and think of the direction you need to go in. Think of long-term solutions like improving efficiency by outsourcing some functions; export companies can look at selling in the local market or a loan for business for a smooth flow of operations among other strategies.
3. Consider your borrowing options
A solution to curb cash flow is to bring money into your business. Financial relief can be sought through a business loan. Apply for a business loan if you’re looking to meet short-term liquidity needs. An instant business loan allows you to have some money in hand to replace your lost earnings, pay your bills, pay your rent and overheads, revamp marketing and sales and more.
Additional Read – Tips for Getting your Business Loan Approved in First Attempt
4. Plan for the recovery
As a business, you should be careful about the decisions you take during such difficult times. Make sure they don’t obstruct your ability to resume operations when things get back to some semblance of normalcy.
Not having a plan to resume operations, cutting ties with key suppliers or reducing payroll may forestall the firm from getting back to business as usual.
Also, think about how you may need to amend your business model to a post-pandemic world. For example, even though clients and employees can return to physical locations, will you continue to conduct operations virtually?
5. Stay strong
Remain alert, agile, flexible and responsive enough to take the needed actions to safeguard your enterprise.
It’s critical that you have access to accurate information, insights and experts. Whether quick business loan or advice, Tata Capital is here to help and support as you navigate through the effects this pandemic may have on your business.