Businesses need to be flexible and adapt to the market as quickly as they can. If there was anything that the pandemic taught entrepreneurs and companies, it’s that adaptation is the key to surviving during difficult times. Businesses can survive these difficult times if they do the following steps.
Create a Cash Flow Plan
It would help if you built a plan that will help your business have a continuous cash flow. Work with your accountants, financial managers, and investors. Develop a cash flow model for the next three to six months, and make sure to give it a stress test at only 50 to 25 percent of your regular revenue.
Once you do this, you could identify how much you need to survive and continue, and even apply for government aid to help you through the tough times. It would be best if you also discussed your plans with your bank, creditors, vendors, and customers. You can ask for extended terms on your payments and work with them to make sure you stay liquid throughout the period.
Increase Your Cash Flow
Look for new opportunities to find new customers or expand your market base. One way you could do this is to explore how technology enables small businesses to reach people beyond their locality. Many using digital marketing and e-commerce are now discovering new customers online from across the globe.
You could also explore using drone technology and teleconferencing apps to manage customer on-site inspections and interviews. All of these could give your customers the idea that you are willing to go beyond to provide them with the best service, and that always creates new clients.
Use social media such as Facebook and Twitter to promote sales discounts, promos, and special sale events. These could be online or on-site, but make sure that the promotion is attractive to your customers and generates interest. Provide prizes to people who reach several shares or retweets, and it’s guaranteed to get the word out.
If you plan to pivot your business model, you could sell or buy specialty electronic parts online. You don’t have to purchase all-new equipment; you can buy second-hand machinery or tools and replace only the parts you need with a new one. You could also sell all your old ones, especially if they are not damaged or have seen minimal use.
It would be best if you also did a critical staffing analysis. Your staff knows it is the last resort and that you have considered decreasing their work hours or provide a staggered schedule, but to no avail. Make sure you follow the proper labor regulations when laying off people so that they will part in good faith with your company.
Surviving any disaster for a business is a challenge, but this pandemic was a challenge that affected all businesses the world over. If you want to remain relevant and successful amidst the new normal, make sure you remain liquid and in control of your cash flow.