Businesses often have difficulties with cash flow, and the COVID-19 pandemic has exacerbated this problem. Business owners are faced with dilemmas such as restrictions on travel and daily activities, and they wonder how to bring in revenue while managing to keep customers and employees protected. Here are some effective strategies on how you can maintain strong cash flow even during a pandemic.
Conduct Business Online
When regulations require social distancing and restrict in-person gatherings, some businesses may be able to offer virtual services. For instance, gyms and other fitness facilities can provide online classes, and healthcare companies, law firms, accountants, and other professionals can offer at least some of their services remotely.
Provide Delivery Services
Restaurants and shops that deal in physical goods can offer delivery services and curbside pickup to their customers. As you transition to providing these services, be sure to educate your employees in the proper manner of interacting with customers while still following safety procedures.
Maintain Contact with Customers
If your company is now delivering, offering curbside pickup, or providing virtual services, let your customers know. Send out promotional emails, and make announcements on social media. Try selling gift cards that customers can use when your business can reopen its physical location.
Negotiate Terms for Accounts Payable
To stabilize your company cash flow, negotiate with vendors, suppliers, and your landlord for more favorable payment terms. You may even be able to work out a temporary grace period on payments.
Apply for Assistance
Most businesses require additional financial assistance in these difficult times. Look into federal, state, and local funding programs for which your company might qualify. The CARES Act has various forms of small business support such as the U.S. Small Business Administration Paycheck Protection Program, which helps you to continue to pay your employees so you will not have to let them go.
For more advice on maximizing cash flow during the pandemic, get in touch with Sterling Capital Consulting.