Sadly, we are living in the end times for many businesses that have been struggling through the many months of the COVID-19 pandemic. For many industries, it has been a long six months of waiting for some kind of break, some kind of relief. Now, many businesses are closing their doors for the last time.
If you’re looking for answers, ideas and tips on how to avoid becoming one of these businesses, here are a few things you can do to strengthen your company’s future:
1. Do your cash flow forecasts
If you haven’t already, now is the time to complete a thorough cash flow forecast. Without an idea of where your cash flow is, you will be unable to make informed decisions. Where does your accounts payable sit? How much cash is tied up in accounts receivable? You need all the details on wages, rent, taxes, supplier payments, unpaid invoices, etc. Only when you have a clear picture of the money moving in and out of your business can you take precautions, adapt and move forward.
2. Assess your financial position
Take a closer look at your current financial position. How does it compare to your competitors? Are any of them showing signs of going under? Are you in a position to take advantage of opportunities to move ahead? Are there any holes in the market right now that you can fill? Could you benefit from a boost in cash flow from a fast, flexible funding source, like a merchant cash advance? One way you can strengthen your financial position and its chances of survival is to take an honest look at where you sit compared to the rest of your industry.
3. Don’t wait for a government rescue
A lot of business owners are consumed with the complaint that the government is not doing enough to help them. This is a dangerous mindset since it distracts you from taking action because you are waiting for the government to fix your problems. One of the perks of owning your own business is that you have control over its direction. Deal with each hurdle as if there is no help coming; if it does, it will simply be an added bonus.
4. Think outside the box
In times like these, one of the most important things to do to save your business is to get comfortable with being uncomfortable – don’t be afraid to think outside the box. Can your business shift to an ecommerce shop? Is offering curbside pickup and delivery an option for your business type? What new ways can you add value to your customers? What new needs and challenges do they face that you are capable of fulfilling? Can you update your pricing and terms to be more convenient and attractive?
The best way to survive uncertain times is to try to embrace the change. Yes, it can be painful, overwhelming and stressful. But it’s the businesses that pivot and adapt that not only survive, but find new ways of satisfying their customers and pushing their operations to a new level.
Author Bio: Michael Hollis is a Detroit native who has helped hundreds of business owners with their merchant cash advance solutions. He’s experimented with various occupations: computer programming, dog-training, accounting… But his favorite is the one he’s now doing — providing business funding for hard-working business owners across the country.