Posted by Tim Thompson CPA PLLC

Important Things Small Business Owners Must Focus on in Crisis

Important Things Small Business Owners Must Focus on in Crisis

Almost every business is suffering the impact of the COVID-19 pandemic. There are new challenges that companies must overcome. Everyone charged with the mandate of maintaining companies needs to look for ways to overcome challenges.

In times of crisis like this, small business owners must focus on some specific parts of their business. Here are top areas to focus on when planning

  1. Cash Flow

There are various forms of stimulus packages for businesses during this crisis period. You, however, need to know how to use this stimulus judiciously. Lots of businesses do not plan with the incentive they receive, which leads to bad decisions.

As a business owner, you should know:

  • The impact of this money for your business

  • How long can the business sustain you?

  • How to make money sustain your business for long

Besides, businesses need to know their break even point alongside the minimum sales they need to take care of overhead. They should know how to handle themselves if sales do not go as planned

  1. Production 

The crisis period is a time to keep tabs on sales and weighing it with the forecast. It could be a good idea to focus on core products that will activate their business. 

For a business with a team, come up with plans to handle the production needs. Taking strategy to minimize cost while reducing overtime and double time is a good idea

  1. Staff

At this moment, your business needs to work with a reputable HR expert who could be in house or outsourced. This is important for you to understand the complex employment rule.

Your clients need to know their rights be it reducing hours, standing team members down, working from home, etc. they need to know their obligation. 

Communication is also vital as employees are as scared as business owners. Should there be any announcement, make sure your staff understands its implication.

  1. Existing clients and Customers

Crisis period is a time you need to look after your clients. It is not a time to communicate about the virus as everyone knows it. You also need to feed your clients what they need to know. 

Your clients must know the step you are taking to support them, your business's progress, and your communication strategy. Communication is equally vital for clients as they need to be kept in the loop. This will also help them further identify where there could be further opportunities.

Above everything else, be sure you are positive. Clients are likely to remember how you made them feel when this is over. 

  1. Be Proactive

Warriors are made in the heat of the battle they say. Your clients will like to cross their legs and enjoy Netflix with a coffee, but they can't.

They are excited when they are active and creative. People have problems that need to be solved. This is helpful as many weak businesses might not be able to successfully weather the storm of the crisis.

That the business is careful with their expenses is not a license to reduce the marketing budget. It is about making smart decisions as compared to knee-jerk ones. It will be a terrible idea to cut off all marketing activities.

  1. Personal State and Mindset

Coronavirus is not something we can control, but we can adjust how we react, what we focus on, and how we feel. It involves getting set for the worst while hoping for the best.

Let everything be in perspective, and do not consume everything the media throws at you. Guide what you consume from the news. Without a doubt, the crisis period will pass.

Tim Thompson CPA PLLC
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