Strategies to Keep Your Business Going During the Pandemic

The COVID-19 pandemic is rapidly spreading, with new updates flying in every minute. As the situation evolves, many small businesses are uncertain as to what steps to take to decrease risks, protect employees, and support clients. 

By mid-March, according to a BDC survey of over 600 Canadian businessmen, 73 percent of businesses already felt the detrimental impact of the crisis.  

The impact on startups or small businesses can, unfortunately, be much more brutal, as they have scarcer cash reserves and a smaller margin for managing sudden slumps. The ripple effect of this shutdown would have a significant impact on India’s economy as it affects all business sectors resulting in low revenue generation due to a potential halt/slump in product and/or service sales. 

Now businesses will have to adjust to a new set of rules during these testing cycles and be mindful of the following aspects to reduce risks and stand with the slowdown caused by the effects of COVID19. As businesses have started unlocking, here are things to be taken care:

Take your business online

There are plenty of reasons to take your business online and be updated according to the current situation. Using cloud-based accounting software can get your books done faster and mange the entire manual tasks efficiently. It is easy to access your books from anywhere, anytime with just an internet connection. And you can have details of all reports and invoices at your fingertip. 

Set a remote work option 

Enable your workers to work from home, as much as possible, to reduce interaction and maintain social distance. Many people are now working remotely, company owners can use a lot of free resources so that teams can keep in touch and continue to work even though they are not in the same area. 

Implementation of a remote work policy that includes your team to be online e.g. by email, Slack, or video call, and what deliverables are the duty of each team member to complete.

Improved online infrastructure 

COVID-19 has taught us all how to live life with limited resources. Too many professionals are trying to stop traveling as much as possible in order to attend board meetings, seminars, festivals, and outdoor meetings. For businesses, video calls or zoom meetings will soon become the new standard. Many will start conducting online classes or virtual consultations. Hence, strengthening your digital infrastructure at home is necessary so that you can always have the feeling of working from the office.

Adjustment to the cash-flow 

There will be a related impact on your cash flow if you start making adjustments to the way you do business in the short term. And with changes to your plan, you need to take the time to understand these changes’ financial impact and develop a cash flow forecast that reflects those changes.

Reduce Inventory Cost 

Businesses would try to reduce inventory costs without compromising efficiency. See if you can buy at a cheaper price from somewhere else, opt for drop-shipping or avoid shipping and warehousing costs.

Crisis management 

The worst-case scenario needs to be planned for the companies. Service companies will continue to operate in some way, other industries, such as restaurants, multiplex theaters, and travel will have to think about “Plan B” to handle staff and cash flows. This would be appropriate to adjust the business model during these crises or to find an alternative business model.

Reaching to the customers 

There will be a related impact on your cash flow if you start making adjustments to the way you do business in the short term. And with changes to your plan, you need to take the time to understand these changes’ financial impact and develop a cash flow forecast that reflects those changes.

The Coronavirus outbreak, which has triggered significant disruptions to businesses around the world, has presented unprecedented challenges before the world. In times like these, if you’re standing by your people and not letting them crash, you’ll be able to create a trust-based relationship that let you will outperform others when the tide turns.