9 Jun 2020, 11:30 — 4 min read
As we transition from enhanced community quarantine to general community quarantine, the two-month lockdown period to slow down the spread of novel coronavirus has brought pivotal lessons to every business owner – from tightening cash flow, working remotely, to shifting online.
And whether you like it or not, you will never know when the next crisis will hit your business. In the webinar, ‘Transitioning your business to the new normal,’ organized by Olern, Bounceback PH, and UnionBank GlobalLinker, Marcus Erlano, Head of Sales & Customer Support of First Circle, shared some tips to business owners like you on how you can make your business storm proof.
There’s nothing wrong with being optimistic in the middle of a crisis, but you should also set a fine line between being optimistic and realistic. Sure, you will get through and survive this. But you should also look at the worst-case scenario that can possibly happen to your business and consider the following.
Cash flow is the lifeblood of your business. Without a steady stream of cash flow, sustaining your business can be challenging and can pose a threat to end your business.
By computing your average monthly cash flow, you will find out how much is coming in and coming out. By then, you should know how much money is projected to come in and how many more months your business can survive.
Also read: Manage cash flows during a period of crisis
While the cash flow is limited during the crisis, you should then learn to cut unnecessary expenses. For example, you can cut the subscription services that your business is rarely using. You need to learn how to let go of things that are unnecessary. Renegotiate contracts and find ways on how you can extend payables. Communicating your current situation is essential here.
Having access to secured financing is essential for your business to survive during a crisis.
Even in the midst of crisis, bills for your monthly rent, utilities, wages and others are still piling up. With this, you can ask for payment extension. In accordance with Bayanihan to Heal as One Act, the government-mandated a 30-day grace period in payment of loans and rentals. You can also pay your bills with a credit card to conserve cash longer. Using a credit card will not only help extend payment but it also allows you to earn card rewards like points or cashback. If you don’t have a credit card yet, you can apply here.
It is necessary to take action immediately when it comes to conserving cash. You should review your daily and external spending and decide which expenses can be extended.
Having access to secured financing is essential for your business to survive during a crisis. With rising fintech companies that are committed to provide funding for small, and medium enterprises, you now have several options that best suits your needs. There are short-term financing and non-collateral loans that you can avail of from fintech players like First Circle, Acudeen, SeedIn, Esquire, SeekCap which can help you jumpstart your business during and after the crisis.
Also read: 6 financing options to help your business stay afloat during and after crisis
These are some ways to help you rise above the crisis. You may have delayed your plans for expansion and growth. But take this 2020 as the year to learn from the global crisis and take home all lessons that you need to survive and grow in the future.
Image source: Shutterstock
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By Daniel Remo