March 17, 2020
As the COVID-19 pandemic continues to unfold, keep your business up and running with these six tips.
Keep Cash Flowing
Encourage customers to purchase gift cards or future services from your small business – as well as from others – to keep cash flowing in your local economy. Find ways to preserve on-hand cash to weather lean months in the near future. Consider suspending expansion initiatives or larger investments until markets stabilize.
Start a Conversation with Your Lender
Early communication with your lender can present financing opportunities now, that can be taken advantage of later. Lines of credit, SBA disaster assistance loans, and other options can all be considerations. If you’re a current Mountain BizWorks loan client being negatively impacted by COVID-19, please contact your lender directly to discuss what options may be available to you.
Communicate Early and Often
Customers and employees will likely be exposed to conflicting information and feel anxious or confused. Be sure to communicate safety and general policies promptly, clearly, and in a balanced manner. Furthermore, communicate contextual information and the reasoning behind policies to deepen understanding and operational direction.
Review Your Inventory Management Practices
Evaluate your inventory to determine which products can be quickly turned over. Smaller margins may be more important in the short-term to keep cash moving. This evaluation takes careful planning to not disadvantage your long-term profit.
Re-Evaluate Your Break-Even Point
Markets have shifted, demand has shifted similarly. Review your revenue and costs to better gauge inventory and financing requirements.
Allow for Remote Work Where Feasible
Set expectations and communicate requirements to employees. Encourage sick employees to stay home and follow CDC, Federal, and state recommendations for safety.
Adapted from content provided by the Blue Ridge Community College Small Business Center.