The international COVID-19 pandemic has created uncertainty in the business world through ongoing regulations, restrictions, and travel bans to prevent the spread of the disease. Business owners are faced with the necessity of protecting customers and personnel while at the same time keeping their companies profitable. Here are some tips on how you can keep cash flow strong even during the economic uncertainty caused by the COVID-19 outbreak.
Run Your Business Online
COVID-19 restrictions have caused some businesses to close their doors and others to restrict foot traffic. Although, many services can still be offered virtually. For instance, medical facilities, law firms, accounting offices, and other companies can provide virtual services through video conferencing tools. Workout studios can live-stream training sessions and fitness classes. Find a way to connect and provide services to your customers online.
Provide Delivery Services
Some restaurants and retailers have been forced to restrict in-person service to customers. However, you can compensate for this by offering delivery or curbside pickup services. Research how you can safely accomplish this, and retrain your staff so they can effectively deal with these changes.
Leverage Social Media and Email
Once you have found a way to provide virtual services or to safely deliver goods, be proactive in letting your customers know that you are still in business. You can do this by sending out email notifications and by regularly posting on your company’s social media sites. If you have been forced to temporarily close your physical location, consider generating cash flow by selling gift cards that your customers can use when you reopen.
Find Out If You Qualify for Assistance
Even if you manage to conduct some of your business virtually or make deliveries, you may find that company cash flow is reduced. To compensate, find out if your business qualifies for financial help. From the various federal, state, and local programs that have been set up to assist small businesses during COVID-19.
Negotiate with Your Creditors
If your cash flow is low, negotiate with your creditors and attempt to arrange more favorable terms with them. For instance, ask your landlord for a discount on rent or a grace period on payments. Request extended payment terms from suppliers and vendors.
For more advice on strengthening cash flow during COVID-19, contact Sterling Capital Consulting.