9 Steps to Ensure Your Small Business Survives COVID-19

The crisis caused by COVID-19 or coronavirus has led to increasing uncertainty for small business owners as we see more and more businesses empty and our income reduced.

In situations like this, it's important to take preventive measures and not make decisions driven by panic. Today, we share some actions to take to make this contingency as mild as possible for your small business.

1. Create a Cash Flow Forecast

First and foremost, besides checking your account statements and savings, it's crucial to analyze your cash flow.

This involves documenting in detail, and up to the date they should be made, your payments for salaries, suppliers, services, rent, taxes, other expenses, and expected income. This way, you'll truly understand the situation your business is in and plan your contingency strategy.

To learn how to create an effective cash flow forecast or improve the cash flow in your company, you can consult:

• Your bank's mobile application to monitor the inflow and outflow of your money in real-time, cash availability, schedule payments, and receive alerts.
• Expense control applications.
• Tools to create cash flows, such as: https://www.sheetgo.com
• Tutorials on YouTube.

2. Create a 3-Month Financial Plan

With a clear vision of your business through your cash flow, it's time to plan your strategy for the next three months.

Analyze the conditions you're in, so you can identify your most immediate or urgent debts, but most importantly, identify the points where there is a possibility to defer or postpone spending.

3. Talk to Your Suppliers

Speaking of deferring or postponing expenses, one of the main costs for most businesses is their suppliers. Approach each of them and be honest about your business situation. Request any support or help they can give you so that you continue to be a good client for them in the future, whether by postponing payments or offering a discount.

Remember to be careful with your payment plans, especially with other small businesses, as they are also facing the crisis.

4. Check the Support Available from the Government

Stay informed about the resolutions on economic support for small businesses that the federal and state governments may be providing. Make sure to consult official accounts and websites to receive this information firsthand.

5. Review and Update Your Contracts

This can be a very particular or delicate point for some, but this is a critical time to review and update terms and conditions of cancellation in your contracts, especially if you still maintain the same conditions from a few years ago.

This is an important step since it's likely that your previous terms and conditions anticipated particular and sporadic situations, not frequent cancellations as many of us can foresee during the contingency.

Of course, being honest and reasonable with your clients, who are also in a difficult position, is of utmost importance at this time. Reaching an agreement that benefits both parties will yield greater results in the future.

6. Seek New Opportunities

Coronavirus or not, some companies still need to acquire certain services and spend that cash, so it's time for you to look for new ways, such as great offers and excellent deals, to receive payments upfront or in parts, instead of at the end of a project.

There are more opportunities you can find during this time, ask yourself these questions: is there another product you can manufacture or another service you can offer temporarily? What else could your team and you offer or do to increase sales?

Consult and brainstorm with your entire team, and it's likely you'll find an answer to implement temporarily while circumstances return to normal.

However, don't lose sight of your current clients and provide them with the best service you can offer. It's time to thank them for their preference and ensure they stay with you; it's time to acquire loyal customers for a very long time.

7. Digital Strategies

Despite the uncertainty we perceive daily, one thing is certain during this contingency: digital strategies will be your best ally to keep your business relevant.

Focusing on e-commerce or online sales, home delivery services, or shipping and other options provided by the internet is a transition that most businesses can take to stay in the market.

Staying in contact with your clients through social media, conducting community activities, creating promotions, and keeping them informed, even if you can't continue your operations, will keep you on your clients' radar. So, when your doors open again, your clients will be waiting.

Learn more about how to invest in a digital strategy focused on your business.

8. Training Your Team in Digital Tools

Along with the previous point, this is a good time for your team to train, especially in digital tools.

Taking online courses to receive training in new skills will help you have a much better prepared and efficient team, avoiding the hiring of new employees. This way, they can pay attention to or develop in other areas while their respective departments are temporarily out of service. It may even motivate the team in the development of new ideas and opportunities.

9. Payroll

Lastly, we must address the topic many want to avoid, but payroll expenses are among the highest in some businesses. And we know many have this question in mind: how much longer can I keep my team?

It should be clarified that layoffs are the last option and something we do not recommend. So, besides not hiring new team members, what can you do before reaching the last option?

Start by proposing to your team to reduce working hours per week, thus avoiding layoffs but reducing payroll expenses, or a collective salary reduction so not everyone is affected, and for now, suspend bonuses and gratuities. Talk to your team and clearly outline the business outlook. In a spirit of solidarity and support, you will reach an agreement.

Remember that while there is no income and the forecast for the future is not positive, as much as we want to support, it's better to let go of one person (whose performance and output are not what is needed) than for the entire team and you to be out of business, without a prompt possibility of starting a new venture or generating new jobs.

At Brand Industry, we have expertise in developing digital strategies, schedule a consultation with us and discover the scope of your business.

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