This year has become a huge headache for business owners due to COVID-19 pandemic. Because of strict government regulations, a lot of stores nationwide halted their operations while some are struggling to recover the sales they lost. With little to none revenue, many businesses are also struggling to pay operational expenses including rents, utilities, and payroll as it continues to pile up even during the lockdown.
Nevertheless, a seed of opportunity lies in every crisis. It may not be the best year to aim for business growth; however, there are still ways on how you can manage your finances, and overcome the threat of closing your business.
Bounce back from the negative impact of the pandemic by practicing these helpfl steps:
1. Secure your cash flow
Collecting payments and securing supplies have become challenging due to community lockdowns. These might have affected your sales as well as your cash flow. Despite that, there are several ways to secure a stable source of funding.
- Cut costs – Unsubscribe to services, utilities, and other expenses that are not a necessity at the moment. If you can, bring home important equipment or valuable items from your store so you won’t need additional security expenses.
- Extend payables – Talk to your lessor and discuss ways on how they could possibly freeze your rent. You can also approach your supplier to ask for extensions regarding your payments.
- Apply for a loan – Lending companies surely understand your scenario and certainly, they are one of the most considerate institutions
that can help you during this crisis. Don’t be afraid to get a loan to save the business you love!
RFC can offer you the best loan deals for your business, with guaranteed low interest rates.
2. Find alternative ways to sell
Be innovative with the way you sell! As we enter the ‘new normal’ scheme in business, it is high-time to implement strategies that will guarantee not just the satisfaction but also the safety of your customers.
- Enable delivery services for your business – Find ways on how you can bring your products to your loyal customers through safe and secured delivery options. You can partner with online delivery platforms to lessen the hassle.
- Activate online selling – Be present in the online market community. Join social media groups where customers that specifically find products like yours can be found.
- Extend your business at your home – This could be promising especially if the products or services you are offering are essential to households like food, cleaning materials, repair services, etc. Bring your business close to your neighborhood and let the power of word-of-mouth do the job!
3. Invest in supplemental products or services
In case your goods or services are non-essential or are not necessarily needed during the pandemic, explore other business ideas that could supplement your initial products. For example, if you sell ready-to-wear clothes, perhaps you can sell face masks that match the dresses you sell.
It’s important to ask yourself: What are the things that people will definitely buy during a pandemic?
4. Maximize social media platforms
Since face-to-face interaction with customers is still not recommended, it is time to up your game through your social media accounts. Be as loud as possible about your business, but you have to remain sensitive given the current situation as we are still undergoing a health crisis. You can create online posts to market your goods or live videos to showcase your creative process in making your products — there are digital tools that can help you with this. Promos are also an effective way to boost customer loyalty and traction.
Don’t forget to let them know the safety measures you are implementing in your business to gain customer trust and confidence.
5. Digitize your payment system
As you shift into online selling, you should explore different ways on how customers can pay you efficiently. There are several online payment platforms that you can use to secure payment like GCash or Paymaya. Embracing a digital payment system can help your business have seamless transactions with your customers while mitigating the risk of getting exposed to coronavirus. This can also minimize the risk of canceled orders by implementing strategies that will guarantee a customer’s purchase.
Whatever steps you are going to implement for your business, always make sure that you follow community guidelines and government protocols to slow down the spread of COVID-19. These practical steps in managing your finances can help you emerge stronger during this crisis.
Being your own boss comes with a huge responsibility, and we do understand that sometimes cash flow can be a little tight. We also know that, in order to grow, you need to increase inventory or beef up your capital. RFC supports Filipino entrepreneurs by offering flexible business loans.
We help your business dreams take flight.
Image source: Freepik