COVID-19 pandemic so far has been one of the worst global crises in recent history with severe economic impact on all businesses irrespective of size and location.
As business owners, grappling with the economic impact of this outbreak and the lockdown decision by government can be overwhelming.
What is, however, important now is to focus on cash flow preservation as one of the fundamentals that will ensure business continuity post-COVID.
The following are practical steps every small and medium business owner should consider in posturing for a better outlook:
1. Keep all production equipment in good working condition.
2. Expedite procurement of critical stocks to hedge possible price increase and stock-out situation. Just in Time inventory won’t fit now.
3. Renegotiate all contracts and cancel some of the monthly subscription-based services
4. Focus more on social media marketing and conserve fund budgeted for conventional marketing
5. Make efforts to collect all receivables. Cash will be critical to kick-starting operation
6. Continue to attend to customers’ inquiries online and maintain engagement
7. Start considering other areas of opportunity that can be harnessed post COVID-19
8. Consider salary rationalization. There is a need to ensure that the business can support minimum overhead for short term (3-months) to mid-term (6-months) period.
9. Consider creative ways to cushion inflationary effect on the workforce.
10. Listen to industry news and stay close to other business owners