Who would’ve thought that 2020 was going to be the year of a pandemic? And boy has it hit NZ businesses hard!
With over hundreds of local New Zealand businesses in fear that they will have to close their doors for good, it’s no surprise that many business owners will be doing anything they can to get their business up and running as soon and as safely as they can.
So, how could you help save your business from COVID-19?
- Focus on cash flow instead of balance sheets and profit. Ensure that you forecast your cash flow out to six months at the very least. Then touch base and update the forecast each week. This will help you better plan for the future and dodge those pesky financial difficulties.
- Be proactive. Contact your bank as soon as you can with your forecasts and plans. This will save both parties a lot of time and will be better off for your business.
- If you have an expense that is not directly related to the product you sell – get rid of it. This includes expenses such as company cars, magazines, etc. If you don’t know, ask. Ask your landlord about the possibility of a reduction in your building rent.
- Act early, act big, act once. If you need to make cost cuts, such as staff reductions make sure you do it as soon as possible. The longer you wait, the harder the decision will be.
- Ensure that your employees, suppliers, bank and clients are all on board with your plans. Communicate with them transparently so that you’re all on the same page. Honesty will also ensure future loyalties for your business.
- Put your mental and physical health first.
- Take advantage of digital marketing. Everyone is online now, so get cracking on marketing to your target audience. Focus on being positive, share your values with your audience, be authentic, you don’t always have to post about what you’re selling.
- Focus on taking action, instead of dwelling on what the future might look like. Choose to read the positive articles, instead of the negative ones.
- Look out for opportunities. Keep an eye on your competitors, but don’t lose track of your own business strengths.
- Remember that this recession will pass just like the previous ones have. And don’t be scared of opportunities that arise, once your cash flow is under control, don’t be afraid to take small risks in order to benefit your business for the long term.
Think about the immediate tactical decisions you could make during this crisis response. Make sure to look over your revenue and cost levers within the business and how to manage your cashflow.
Contact us for assistance with your cash flow, forecasting or even a chat before approaching the bank. Email us today.