As the world is at the stage of wondering what Covid-19 means to them, small businesses must think and act quickly about what action they can take to best protect their revenue.

While Governments begin to implement protection plans, small businesses also need to come up with a plan to help to manage the inevitable.

From disrupted supply chains to drops in customer and sales numbers leading to shortened cash flow- here are some tips to manage some of the risks of the pandemic to your business. 

• Understand your supply chains and explore alternatives 

Many businesses rely on components from overseas sources- it’s a part of being in a globalised society.

If your small business relies on products or services from areas that have been affected, look into alternatives that operate locally (if your area is not affected at present).

As well as damage limitation to your small business during this time, this could also be a good opportunity to consider supporting local suppliers. 

• Have a contingency plan in place 

Have a plan in place that will help you to deal with any disruptions to your sales. Small shops, for example, may need to take to their social medias and advertising to inform customers of any changes in business hours- keeping customers informed and reassured can change their behaviour. 

Consider looking at your insurance policy for your business that will cover a loss in earnings. 

If you’re looking at getting business insurance for your shop or retail space, make sure you take the time to compare quotes to get the right deal for you. 

To minimize the effects of a loss in earnings, continue promoting to local people- it will also help if you continue to stock products that are in high demand! 

• Keep an eye on cash flow budgets 

In order to keep ahead of the game,  you need to know in advance what kind of impact a slowed cash flow will have on your small business.

At present, things are looking pretty dire, with larger organisations being wildly affected by the virus from large travel corporations to mass sporting events suffering as a result.

Keep ahead of the game by reviewing and adjusting your forecasts to determine how a reduction in sales will impact on your ability to pay suppliers and manage debts.

This is where business credit reports can be invaluable. They provide insights into your creditworthiness and financial health, allowing you to understand your risk profile better (more about this at https://www.creditsafe.com/us/en.html).

By monitoring your business credit report regularly, you can identify areas for improvement, access better financing options if needed, and negotiate more favorable terms with suppliers.

This proactive approach not only aids in cash flow management but also strengthens your business's overall financial stability during challenging times.

• Openly communicate with customers 

Having honest communication with your customers is incredibly important, as customers are your main revenue source and will need to be made aware of any issues that can arise, and how your business plans on dealing with them. 

You may need to consider renegotiating payment plans with suppliers, or ask  your landlord for an extension if you feel as though you will struggle with rent payments. 

• Train all staff 

In case of long-term absences, cross-train your staff team so that business needs are covered according to business need.