Cash flow management is an integral part of a business’s overall assessment and action planning during the COVID-19 crisis. This is not only for big companies but even for small businesses and those who are not yet impacted by the downside of the economy brought about by the global crisis. A business should evaluate its cash flow requirements and come up with development plans under different scenarios that can possibly boost the company’s cash flow even during the crisis.
What do financial experts advise?
1. Provide Virtual Business Services
Since everyone is on lockdown or in a quarantine situation, a lot of social distancing restrictions are limiting people to gather in public places. While public health is very crucial this time, businesses are greatly impacted especially those that are dependent upon foot-traffic. The lockdowns have greatly affected business cash flows but with the digital age and technology, you can still look for ways to serve your customers. For instance, if your business is a gym, you can bring back your business even without opening your place physically and offer workouts to your clients through virtual sessions and deliver through live-streaming fitness activities. You can think of ways on how you can do this specific virtual services by your business. Your objective is to keep your cash flow active and keep your business at par even during this crisis.
2. Consider financial help programs
Learn about financial programs to help your cash flow become at least healthy and make the business active. Although there may be innovative solutions to run your business, there is still a possibility that you still need financial assistance to support your expenses for your employees and customers. This assistance may be in the form of cash loans or cash credits. Financial experts believe that gaps in cashflows hinder a business to operate continuously but because facilities like invoice finance services, businesses are able to produce funds without property security and they can avail of this on a fixed-term contract with minimal contract term.
3. Keep a connection with your customers digitally
If you have figured out how to continue your service to your customers, keep in touch with them through social media, or for a personal approach, send them emails. If your operations stopped, and you want them to feel that you still have that passion to serve them, you can send them e-vouchers or gift certificates which they can use once you open your shop again. Some companies also offer gift cards or discount codes that may be purchased and sent as gifts to other people, so you are making income from your promotions and when they use the promos, it’s another income-generating output that you get from your emails or social media posts.
Having to deal with cash flow issues during this Covid-19 crisis can be a little bit challenging. There are several financial institutions that actually offer business solutions for businesses that are greatly impacted and have experienced downfall during this worldwide crisis. As a business owner, you need to think smart and consider the options that will really help boost your revenue and keep up with the expenses that will be incurred as you try to revive your business.