Keeping your business cash flow during a crisis is your main priority after taking care of the safety of your workers and customers, significantly when restrictions are finally eased for business operations. According to Harvard Business Review (hbr.org), companies who pursued near-term cash-flow strategies such as aggressive near-term revenue and expenses management effectively succeeded in prior crises. They are ideas that “perfectly balance the empathy required to cajole customers into helping while ensuring the economics of the business remain sound.”
Below are actions you can take to keep your cash flow pumping during a crisis.
Revisit your previous sales, gross and loss reports.
Before and after the COVID-19 pandemic, you have different sales reports, gross profit and loss. Compare both available data to see where your business is most affected by the epidemic. The results will enable you to make accurate projections and goals for the rest of the year.
Explore new business strategies for revenue.
Target loyal customers and offer significant discounts that they will likely use to purchase your goods and services. You can do this by giving gift cards or using a subscription-based business model. For example, travel companies could use gift cards to encourage customers to buy tickets for their travels next year.
Cut down non-essential operating costs.
With the restrictions established for business operations, you will see the essential and non-essential expenses needed to keep your business going. Review the procedures that your business will need to stay afloat, and either cut down or lessen those that are necessary. These could be employee hours, supply or utility.
Be updated.
The Australian Government, as well as others around the world, are creating programs that will help to support businesses amid Covid-19. Please make use of the information and resources they release, as it will help business owners navigate their way through the current situation. For information regarding Victoria, look at www.ato.gov.au, for the most recent Government updates.
Find out more effective strategies to keep your cash flow pumping during a crisis, from our team here at Premier Professional Partners. We provide cash flow, profit and loss projections to help you create accurate and realistic decisions for your business. Our team of Certified Practicing Accountants can help you in your accounting and tax, provide business advisories, and can also be your Virtual Chief Financial Officer.
For those in the property development business, we also offer our expertise on the tax effects of the sale, purchase or exchange of real property and other assets.
Contact us on 03 9347 8033 or send us an email at admin@ppartner.com.au