5 Tips for Financial Management During and After

COVID-19

Before the spring of 2020, business owners could not have anticipated a global
pandemic shutting down the economy for months on end. COVID-19 has created
a very challenging situation for manufacturers, supply chains, and end consumers.
While this situation has had a profound effect on all companies, larger companies
have access to more resources to mitigate the circumstances, while those with
lower revenues have struggled mightily.

As South Florida-based business consultants, we’ve been called upon to help

advise local businesses of all sizes not only to survive the coronavirus pandemic
but to become even more financially prepared for the future.

These are five recommendations that small and medium-sized enterprises can’t
afford to put into place during the current health crisis.

1. Control What You Can Control

Business owners can control many aspects of their companies. However, there
remain some things that are beyond their grasp—including the economy. In times
like these, businesses must concentrate on something other than dollars and
cents, like customer service. It is the prime opportunity to build customer loyalty
by bolstering communication in emails, a new automated call system, or
becoming more active on your social media platforms. Owners should also
reevaluate their internal communications and staff relationships, as company
culture is often an underrated measure of success.

2. Lead Your Staff

As anxious as business owners are, employees are undoubtedly grappling with
their feelings of uncertainty. Being honest about your company’s financial health
regardless of its current state, is one way to boost morale. Employees report a
stronger relationship with their managers and higher-ups when they feel they
know what’s going on. Just as importantly, owners must work to inspire
confidence. Employees must feel secure in the knowledge that their leaders are
working fiercely to turn things around. An uninformed, panicked, or otherwise
desperate workforce will ultimately cost far more than a few quarters of declining
revenues.

3. Cut Expenses

Cash flow planning is critical to businesses of all sizes. Your goal should always be
to make your dollars last as long as possible. When times are good, expenses tend
to creep now is the time to take a long look at costs. Various subscriptions or
other recurring fees like your phone and internet plans, and even consider leaving
your traditional office for a remote-based workforce model. In a situation like this
one, saving money is nearly as valuable as bringing in new clients or customers.
However, don’t slash and burn indiscriminately; shop around for various options
to replace your current resources, and take the time to make an informed
decision that doesn’t sacrifice quality. If something isn’t necessary, consider
cutting it, knowing you can usually bring it back in once you’ve reached a place of
stability.

4. Go Back To Square One

Back when you first started your business, no one knew your products or services
existed. It took long, grueling hours of work to break even, and then become
profitable. It’s come time to view your company as though in its infancy again.
Treat every customer as though they were your first, and relentlessly follow up
with new prospects. This is not the time to be picky, or ignore potential business,
even if it doesn’t appear as though it will be as lucrative as you’d like. When it
comes to COVID-19, all business is good business, so work overtime to keep it.

5. Roll With The Punches

Flexibility and agility will nearly always win over outright power. How well you
adapt to the new business landscape will have an immediate and lasting effect on
your company. One of the best ways to do this is to notice your complaints and
annoyances as a business customer yourself. Whether at the grocery store,
ordering an item online, or interacting with servers or other workers in person.
Note the things you found negative and positive for that matter, and determine
whether you can apply them to your own business. This creativity and willingness
to change will carry you through, and you may even stumble upon a new revenue
stream.

It is understandable to feel a sense of worry as a business owner, especially as

the COVID-19 pandemic persists. Our network-based consultants have helped
several South Florida businesses adapt to the present and prepare for the future.
If you are worried about your business’s prospects, we invite you to contact us for
a consultation.