Many businesses are very worried about their finances right now. It can be rather stressful as their future depends on how they are able to navigate waning profits and stressful financial situations. These tips can help you manage your business finances during the COVID-19 pandemic.
There may be some things that your business needs to give up during this time. You really need to prioritize your spending. Don’t order extra stock that you might not use. Concentrate on things like your utilities and paying your employees. Even if there’s a great deal on certain supplies or inventory, you should hold off on these types of purchases. You don’t know when business will pick back up. You are better off saving that money rather than buying things that you just don’t need right now.
Think Of Ways To Bring In Extra Cash
A lot of businesses are getting really creative in order to bring in some extra cash. Just because their doors are closed it doesn’t mean that they can’t bring in some revenue. Some businesses are offering online learning classes. Those who take these classes will have to pay a small fee. Other businesses are setting up online shops so that they can sell some of their inventory. By getting creative, you may be able to figure out a way to make some money even when your business isn’t open to customers.
Make A List Of What’s Due And When
With everything going on, you may be struggling with trying to remember due dates of payments. This can lead to late fees and bad relationships with those that you are supposed to pay. It’s imperative that you make a list of what needs to be paid. You don’t want to miss a payment and then be responsible for a late fee as well. It’s a good idea to set a reminder on your phone so that you won’t forget about a due date.
Save Money Where You Can
Now is not the time for frivolous spending. You need to save money where you can. Create a budget, and stick to it. Comb through all of your expenses to really figure out where your money is going. You may be surprised to find that there are a lot of areas where you can scale back. Make sure that your business and personal finances are separated. You don’t want to mix the two or you will have issues in the future. Use your accountants or financial advisors for tips on how to save the most money effectively.
Look Into A Relief Program
There are all sorts of relief programs available for businesses that are struggling right now. If your business is having a difficult time financially, you should look into these types of programs. They may allow you to take out a low interest loan to help you stay afloat. While it may not be ideal to borrow money, it will help you get through this difficult time.
Try Not To Touch Your Retirement Accounts
Many business owners are tempted to take money out of their retirement accounts that they can use for their business. It’s probably not a good idea to do this. Chances are that if you can just wait a bit longer, your business will start to pick back up. You don’t want to have to play catch up when it comes to retirement because you took money out of these accounts right now.
Get Payment Extensions
A lot of companies are working with businesses and offering payment extensions. These include both utility and mortgage companies. If you are having difficulty keeping up with some of your payments, call the company that you are supposed to be paying. You may find that they are more than willing to work with you. They may offer you more time to make a payment, or they even might allow you to skip the payment and will add it to the end of your loan.
During these unsettling times, you may be very worried about your business. Fortunately, there are some ways that you can get through it. By utilizing the above tips, you can stay afloat and keep from having to go out of business because of the pandemic.
By Abby Drexler, BOSS contributor