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Financial tips to get your business in great shape amidst the pandemic

Money
 There are a few things worth a try to mitigate the financial effects the pandemic has brought on businesses (Shutterstock)

If you already took the plunge and executed one of your life long goals to become a business owner, still no one would have prepared you for what was lying ahead.

We were all caught off guard and small businesses were especially hit hard by the pandemic.

A global crisis that has affected everyone, we have to deal with financial weariness as we buckle up to see how far this may go as predictions foretell of worse things to come.

This, according to some experts, this could be just the beginning.

Whether you had to cut down on overhead costs or lay off some employees, there are a few things worth a try to mitigate the financial effects the pandemic has brought on your businesses.

Here are some tips on how to stay afloat.

Save

One of the things this pandemic has taught us is the importance of saving.

Considering most people don’t practice the skill of saving, these current times have been a painful reminder as to why you need to keep some cash away for the rainy days.

Start an emergency savings fund if you don’t already have one. Cut down on your spending and divert as much cash as you can to build that fund.

This emergency fund will come in handy to buy stock, market the business and pay out employees as you seek other avenues to grow profits.

 Form the right alliances to get a better market access and create new business opportunities (Shutterstock)
Pay off debts

Most businesses operate on credit. However, due to these uncertain times it would be a good idea to cut back and focus on paying off your debtors.

One of the reasons many businesses are shutting down is their inability to pay off their debt. You risk being auctioned, bankruptcy and law suits for failure of meeting certain financial obligations.

List down all your existing debt and come up with a strategy on how you will pay them off. If you have no idea how to go about it, you should look into hiring a credit counselor who will discuss options and solutions you can look into.

Study your competition

Let’s face it, not all businesses are in the doldrums. Look at those you’re in direct and indirect competition with and see what they are doing.

Look for key strategies they are using to create opportunities for your own line of business. This may require some marketing or even rebranding.

Whatever the case may be, you must find a way to remind current customers why they still need your product as you identify potential ones.

No matter how tight the budget may be, marketing is an integral part of your business. To make money you must spend money.

Form alliances

If your business is at risk of closure it may be a good time to approach your competitors or those who offer complementary services or products to what you are doing.

The right alliance can give you better market access and create new business opportunities. A merger can cut down unnecessary expenses and maximize profits at a time when people are spending less.

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