Covid-19 Pandemic has taken a toll in the world’s economy and one of the most affected by this are small businesses. And although businesses’ sales are greatly affected, overheads and expenses do not stop.
In order to minimize the pressure of cash-flow and to continue thriving despite the situation, taking note of the following will be helpful:
1. Follow through payments
Although everybody is struggling, to keep your business thriving, you must chase and follow through any outstanding payments that your clients have. It is essential to build good working relationship with your clients and to communicate well with them in order to not have any difficulties in getting payments.
2. Review your expenses
Take a good look and review all your expenses. Checking your costs/expenses regularly would be a great idea especially in times like this. Review all payments, subscriptions, expenses in the future, and the like. There might be some purchases that you can cancel or have an alternative process to.
3. Review suppliers and check inventories
There might be some cheaper supplier in the area that can produce the same product/service that you need but with a lower cost that will allow you to reduce expenses. It might also be possible to talk to suppliers that can extend any type of help such as flexibility in payments or offer some discounts. Communicating goes a long way.
4. Communicate with the bank and/or tax department
If cashflow is really stiff, communicate with your bank and with the tax department early on to avoid future problems.
Times like this will really try and push you to your limits, but we can help you to protect your business. If you want to talk about how we can help you, get in touch with us today. You can reach us at +44 (0) 1892 807 001 or email us at email@example.com