Small businesses have been blindsided by the economic impacts of the COVID-19 pandemic, and some are better positioned than others that adapt. If your business needs help navigating stormy seas, consider these six steps.
1. Brainstorm ways to boost revenue. Explore strategies to increase revenue, such as offering modified services, rethinking how products are delivered, focusing on online sales and providing discounts and special promotions.
2. Stay on top of deadlines. Closely manage upcoming bill payments for accounts payable, loan payments and credit card payments. Use online banking and automated ACH services to maintain a consistent payment schedule, avoid late fees and keep vendor relationships on good terms.
3. Take control of your cash flow. If you lack the revenue to pay bills coming due, prepare a short-term cash projection. Make a list of money owed to you, and collect as much of it as possible. Cut expenses to the bare minimum, and pay only necessary items like taxes and overhead costs. Work with suppliers and other creditors to develop a flexible repayment schedule.
4. Time your purchases. If you’ve had a business slowdown, you may be dealing with an excess of inventory that needs to be sold. Take stock of what you have and make adjustments to future purchasing based on current trends and expectations for the coming months.
5. Review payroll and paid leave. Before making hard decisions about staffing, look at all of your options. The Paycheck Protection Program is expected to get additional funding, which is a program that provides emergency loans to help businesses keep their workforce employed during the COVID-19 crisis. Learn more here about how you can submit your application if more funding becomes available. Also, keep in mind, if your business provides emergency paid sick leave and FMLA for employees affected by COVID-19, you may be entitled to refundable tax credits to offset these payouts to employees.
6. Explore borrowing options. There are many organizations who are trying to fill the gap for small businesses with grants and emergency loan funds. We encourage you to visit our website for additional funding options that your business may qualify for.
We Can Help
As your partners in business, we want to work with you to find solutions and improve your company’s financial position. If you’re struggling, call us at 888-995-6471 so we can work together to help your business thrive.