Ways to Manage your Cash Flow for Small & Medium Businesses during COVID-19 Outbreak
A recent survey carried out by the Federal Reserve Bank shows the credit environment, business condition, and insurance coverage of small and medium businesses. Of all the affected businesses, the survey put forward that only 4% has not faced any revenue losses, while 61% of companies suffered significant losses.
The reality is that majority of the small and medium businesses are not able to recover from their losses even after the disasters are over. With the recent COVID-19 pandemic restricting people in their homes, it has become quite challenging for businesses to keep running smoothly and have their cash flow secure during the outbreak.
Here are 4 effective ways small and medium businesses can maximize their cash flow during this COVID-19 outbreak
1. Providing Virtual Business Solutions
The COVID-19 epidemic has led to lockdown restrictions preventing people from gathering in one place. In addition to this, in many regions, non-essential services have been completely closed. This has proved to be highly disadvantageous for the in-person sales and foot traffic of different small and medium businesses.
Nevertheless, certain technology solutions can help such businesses in serving their customers.
- Fitness studios and gyms can provide personal training classes through video chat.
- Businesses offering veterinary solutions, dental services, or non-emergency healthcare can use telehealth services for providing proper care to their patients.
The ones that are into operating professional service companies like law firms, accounting agencies, and consulting companies, can use the phone, video, and email conferencing for providing services to their clients.
2.Providing Pickups and Deliveries
Small and medium-scale businesses like restaurants and retailers have also been struck because of the social distancing rules and lockdown restrictions. Such businesses can offer pickups and deliveries to their clients while adhering to the local restrictions.
- Making this transition to providing pickups and deliveries would not be a problem for businesses with corresponding online delivery and eCommerce platforms.
- For the ones that do not have such provisions, they can make arrangements for the same and inform their respective customers about such services through emails or social media platforms.
3. Staying in Touch with Clients through Social Media and Emails
This could work for businesses that have collected the mailing addresses and social media account details of their customers.
- Customers should be informed about the different products and services on offer through emails.
- Promotions can also be made on social media handles.
- Send emails to your customers promoting gift cards without any expiration date. Clients can use these gift cards post lockdown when your business reopens, and this will ensure continuous cash flow.
- Even when your business is closed, making constant posts on social media platforms can help in keeping the customers engaged.
4. Looking for Financial Assistance Plans
Once you have implemented the steps mentioned above, you will find that there is a constant flow of cash in your business operations. But still, you might struggle with your finances. So, the best way of alleviating this problem would be going for unsecured business loans.
Different loan programs have been put in place by government and various NBFCs, for supporting small and medium businesses affected by the COVID-19 outbreak.
Dealing with the COVID-19 pandemic can be a bit challenging, but these times will not remain forever. You must take the right steps that will help your small business be up and running again when you are ready to reopen.