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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.
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 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!
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.
Make sure your financials are kept up-to-date to keep on track with levels of profitability, stock levels and balances on a daily basis.
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.
In case of long-term absences, cross-train your staff team so that business needs are covered according to business need.
How To Protect Your Small Business Against The Corona-Crisis