What Small Businesses Need to Do to Cope in This Crisis

We are facing uncertainty on a global scale right now, and everyone is still trying to figure things out.

People are staying at home and practicing social distancing; healthcare workers are out there fighting the war; scientists are scrambling to find a vaccine. Everyone’s just doing their part to stay afloat. Businesses, especially small businesses, are doing whatever they can to manage through this crisis and keep their wheels turning.

How is your business doing?

If this pandemic has taught us anything, it definitely taught us the importance of resource allocation, financial statements, and capital! With proper financial management, we are able to assess where the business stands and what we can do to adjust plans to cope with this hardship.

During this time, it's essential we focus on strategic growth rather than going viral. Strategic growth brings sustainability as opposed to being a "one-hit wonder"!

Some proven growth strategies are market penetration (simply making your current customers buy more products), market development (finding new customers from adjacent markets), and alternative channels (going online or offering deliveries). Which of these are you already implementing or planning to implement?

It is also crucial to have accurate cash flow and revenue records. Small businesses should track expenses and revenue to have a clear picture of where a company stands financially.

If you ask me, this is not the time to take risks for your business. We have smaller margins for mistakes now. This is the perfect time to sit down, take a look at your finances, and make strategic decisions.

We never go into business to have to GET OUT of business due to capital and/or taxes! This is definitely what we want to avoid at all costs.

Experts expect an economic slowdown for the next 12-18 months. Some businesses deemed essential, and those who were quick to shift online are doing well, while most small companies applied for loans under the federal government's Paycheck Protection Program (PPP).

If your business acquired a PPP loan, it's especially important you are strategic with business decisions!

Different businesses have different approaches when it comes to dealing with this global situation. Some companies are downsizing and cutting back on expenses, while some are increasing their staff training and support.

What matters most right now is your resiliency - will you make adjustments for your business to benefit from this situation, or will you repurpose your business to better suit current times?

How are you handling your business finances? What are your plans for your business? How are you coping with our economic situation right now?

If you need to talk to someone about your business finances and accounting concerns, connect with me and let's have a chat!

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