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How To Keep Your Business Safe During Times Of Drastic Change?
It is not often that businesses throughout the world go through a similar crisis and get affected in a similar way. This is what a pandemic is all about! If we talk about the corona pandemic, it has left business owners with no option but to make drastic changes in their business owing to an increase in isolation and a decline in traffic.
Owners need to carefully evaluate the situation and plan a change accordingly. This changed plan of action should not just be focused on ensuring smooth business operations but also the safety of employees and customers through effective precautionary measures.
Although every business is unique in its own sense but in the COVID-19 outbreak period, businesses are facing similar challenges. So, let us figure out the changes required by the businesses in their plan of action to tackle these pandemic challenges proficiently.
5 Tips to Ensure Business Safety and Continuity
1. Get Prepared to Adapt
- Things have changed a lot for every business, and the plans they had made a few months ago are not going to work in the situation of the current crisis. They need to prepare themselves to adapt to this market change and devise new strategies as per the current challenges.
- Some short-term cash problems can be addressed by cutting costs on traveling, marketing, new hiring, etc. For tackling immediate impacts, it is essential to find unique ways to meet your client’s demands, along with diversifying your services and products in the current time.
- For instance, companies offering dog walking services are ensuring regular cash flow through creative ways. Some are serving clients in vulnerable health groups and age by getting groceries for them. Whereas others are looking for families comprising home-schooled kids or at-risk groups that need a dog walker on an urgent basis.
- So, it all comes down to getting prepared and adapting the change. If the corona pandemic stays for a few more months, you might need a new contingency plan for your survival that may require you to renegotiate fixed expenses, cut down on benefits, including layoffs.
Read Also: Statistics to Drive Small Business Growth
2. Evaluate your Finances Carefully
- It is always sensible to evaluate your finances regularly, and during such a situation, it becomes more important than ever. Look for opportunities within your cash flow forecast to limit non-critical expenditure, along with reviewing your accounts receivable and evaluating any credit risks.
- Look for every penny you can draw upon to boost your financial health. Another appropriate option is securing the line of credit of your business prior to your financial urgency.
- Similarly, look for initiatives that comprise small business financial assistance programs that are focused on covering the expenses of your business, especially the ones administered by the Small Business Administration (SBA).
- With The CARES Act, small businesses can get $10,000 in advance (which can go up to $200,000) as a part of the free of charge Emergency Economic Injury Disaster Loan (EIDL).
- Apart from the SBA loans, paid leave and paid sick leave costs are being sponsored by the federal government for business owners with an employer tax credit equivalent to 100% of paid benefits.
- If we talk about the self-employed individuals, they can take advantage of the additional $600 benefit under unemployment insurance till 4 months. For instance, in the Iowa state, single-member LLCs and sole proprietors who can prove their COVID-19 impact can meet the criteria for seeking a grant between $5,000 and $10,000.
3. Prepare a Disaster Policy
- Most of the businesses didn’t prepare a disaster policy for something as big as this, with some not preparing any plan at all.
- Anyhow, every business needs to prepare a new disaster plan that is focused on the pandemic challenges and solutions like remote working procedures, conducting meetings and interviews, traveling, etc.
- Apart from this, the inclusion of insurance coverage for trip cancellations or business closures, supply chain alternatives, unique financial help methods, knowing credit lines in place, etc., should be done.
- When it comes to movie theatres, restaurants, or similar businesses, having a plan B is imperative to ensure cash flow in case people stop coming out of their homes.
4. Cut Costs to Maximum
- Every pandemic comes with a financial crisis, so it is important to save as much money as you can since the future is pretty uncertain.
- You obviously would not wish to see the closure of your business or halted operations due to a lack of funds during emergencies.
- So, in order to avoid that, cut costs to the maximum level to maximize your savings for meeting future challenges.
Also Read:- For How Long One Should Keep Business Tax Records and Receipts?
5. Avoid Engaging with Scam Calls
- Scammers are always looking to leverage opportunities during any crisis, and they are playing no different in the corona crisis as well.
- For instance, many scammers are getting in touch with private citizens via phone or mail and offering them help against claiming their stimulus check for COVID-19.
- If you find everything too easy and uncomplicated, stay away since nothing is uncomplicated during the corona pandemic, especially claims.
- As per The Federal Trade Commission, “Scammers will exploit any situation they think will help them be more successful in their scam. With the outbreak of COVID-19, scammers have found a platform that preys on people’s fears and could make them more likely to be victimized.”
The current phase is a challenging one that every business has to deal with in a fresh manner. From running internal operations to providing products/services, meeting customer demands, sustaining cash flow, etc., a lot of issues need to be addressed while changing the plan of action.
Amidst all this, owners will get little to no time for focusing on back-office tasks like accounting that are equally important. However, they need not worry as there is a definite solution to this in the form of outsourcing.
Meet Cogneesol – A renowned outsourcing company worldwide that has been providing back-office Business Accounting Solutions to firms since 2008. So, while we take care of your accounting, you focus on devising business continuity and growth strategies. Contact us now to start your free trial!
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