As we continue to see the extraordinary impact of COVID-19 and experience disruption to our businesses and daily lives, constantly reviewing the latest guidelines and developments from the CDC (Center for Disease Control and Prevention), here are a few resources that we are offering that can provide assistance, relief, and solution to small businesses that need to overcome their temporary shortfall in cash as it is becoming imperative for businesses to prepare and have a strategy to deal with not so favorable financial conditions in the days to come.
Now, while it is natural that the economies across the globe go through the cycle of boom and bust, nevertheless off-late there is a global feeling that ever since the crisis that the world face in 2009, the gap between this cyclic downturn and progress is narrowing nowadays as economic uncertainty is becoming more recurrent in this current world.
Therefore in this article let us take a look at the few steps that small and medium-sized businesses and startups can take to get them prepared for a future recession so that they can put a harness on to this economic downturn and keep up with their business growth:
- Maintain Healthy Cash Flow
Needless to say one of the best ways to support your cash flow is to get paid faster, which means your small business needs to shorten the window for customer payments, even though there is an imminent fear that this strategy might lead to negative perceptions on the minds of your customers.This is because although according to a report published by Small Business Trends more than 44 percent of SMB owners are not prepared for a recession, nevertheless none of us do want to make our customers think that we are squeezing them because your business is worried about getting paid during these COVID-19 affected turbulent times.
Hence, the best way to maintain healthy cash flow is to resolve and settle late payments, a process that can include:
Perceiving and understanding who owns your business money
Knowing how much money they owe
Provide the defaulters an easy way to pay you their dues
Now, there are even several customers who submit payments late since your business has not made it easy for them to pay your dues. Hence creating a customer portal might provide a convenient way to streamline the payment process and become ensure that you get paid by the defaulters in time.
- Cut spending on unnecessary software
We say this because, if your small business is spending on more than a single all-in-one software solution to manage your business, there is a good chance that you are paying greater than that you need during these financially crucial times.
To prove this to yourself, as an owner of small business, go ahead and add up the total cost that you are spending on all your business growth software solutions (their subscription and licenses) and thereafter look at the pricings of different all-in-one, cloud-based business management tools like an easy to use CRM software which comes with a flat monthly subscription, per-user pricing or yearly payments.
We would suggest that when you are transiting to a new software solution for your small business it might be best to primarily try for a monthly subscription and not pay for a full year when you are not sure what the results will be and how comfortable you will remain in handling the tool.
- Access and Redefine Your Sales Structure
Boosting your sales is often easier said than done. Especially in turbulent economic times. Nevertheless, the right business growth technology and tools can help you to put the structure in place to aid your sales teams to do what they do the best- sale.
Easy to use CRM software solutions do not just help businesses to target specific groups and customers but far beyond that it even aids in keeping a record and a database of your customers. In fact, any best CRM for small and medium business helps to improve your customer retention strategies and even reduce administrative tasks.
CRM software solutions can also provide necessary insights on where your sales are coming from, and if the software is capable of integrating with your other management software resources it can even provide far better reporting and automation opportunities as you measure and gauge the financial side of your sales.
- Maximize Productivity of Employees
Think and access the core functions of your small business or startup, because cutting cost should never be your only recourse since your business should also be looking to boost your brand’s productivity.
In businesses, there are myriad ways to express waste.For example, these can be the time needed to enter data, communicate between teams, fix errors, find essential collaterals and documents, asses project status, communicate with customers…and plenty more.
Now during any recession, all successful businesses optimize their operational efficiency. Therefore work smart and help your customers to trust your services.
For this use productivity software solutions that can help your employees to make the best use of their time.
While there is no exact way you can predict an economic slowdown, there are several warning signs that foretell its arrival.
Therefore, irrespective or not a recession is heading our way in 2020, it is always good and pragmatic to remain prepared since if your business does not have the financial security of a major corporation it is best to follow what the famous wall-street guru Warren Buffet said: “Someone is sitting in the shade today because someone planted a tree a long time ago.”