7 Steps for Businesses to Survive During A Crisis

The crisis that the current pandemic has created means that many businesses, both large and small, potentially need to make some changes in how they carry out their day to day activities in order to remain in a strong position during this challenging time. Here, we share 7 steps for businesses to follow in order to survive during a crisis.

Check what financial help your business is entitled to 

During a crisis, cash is king and unfortunately, a key challenge for many businesses is access to cash. Once major outgoings such as rent, utilities and stock have been accounted for, there can sometimes be little liquidity left. To combat this in the short term, companies should look for any government help available. There are many grants and loans available, particularly for SMEs, to help them meet their ongoing business costs which may have been adversely impacted during the crisis. The financial help you are entitled to depends on many factors and each business is different. However, having a thorough understanding of what help is out there and whether your business qualifies is key. It may help to provide the lifeline you are after and provide you with more of a sense of stability. If you are unsure which funding is right for your business, always seek professional advice.

Diversify  

This may not necessarily mean providing a completely new product or service. Instead, it can be changing the way you deliver this product or service. For example, if feasible can your business be taken online (if you are not already doing so)? For example, if you are a gym can you move your classes and Personal Training sessions online? Being able to still offer your service to clients can ensure you have some much-needed revenue during difficult times. Providing your service online can also be more convenient for your customers and you may even be able to reach a new demographic.

If you have a brick and mortar store, it may not be practical or affordable to suddenly launch a website and start selling from there. In the interim, you could consider selling through a third party such as eBay, Amazon or social media channels.

Understand your figures  

During a crisis, it is more important than ever to have a thorough understanding of your current financial situation. Monitor this on a more regular basis than you perhaps used to. One of the great benefits for those companies using cloud accounting software is that they can get a real-time screenshot of where their business currently is. This information is vital for planning for both the short term and long term. If you understand your cash flow, you ultimately understand your business. During a crisis, businesses should also switch their focus from profit to cash flow. Although profits are still possible and great to aim for, understanding cash flow is the key to survival.

Analyse your assets  

Consider everything the business owns that could potentially generate revenue. For example, this could be older stock that has been sitting in the warehouse for a while. Consider whether there are other avenues for you to sell these assets. If you are part of a supply chain, is there any way you can sell your products directly to the customer and therefore skip the middlemen? Also, do you have anything of value that other businesses may need?

Trim budgets where possible 

Analyse all your budgets and ask yourself whether everything you are paying for is currently necessary. Although it isn’t ideal, you could temporarily suspend all outgoings that are related to the future growth of the business and any new projects you were working on. This will give you more time and budget to concentrate on your core business activities until the worst of the crisis is over.

Brainstorm with employees 

Don’t put all the pressure on yourself to come up with new business ideas and ways to cope during the crisis. Discuss with your employees as they may have some great ideas of their own which could be implemented.

During a crisis, a business needs talented and innovative people. Therefore, it is important that you find and retain people with these qualities. They will not only be able to help you during the crisis, but they will also be pivotal in the recovery and growth stages post-crisis as well.

Keep morale up  

Whilst this can be a challenge in itself, it is important to keep morale positive both for yourself and your employees. Although a crisis is tough for everyone, it can also be an opportunity. Whilst negative emotions such as uncertainty and anxiety are common, it is important that you remain as upbeat as possible, support your team and picture your success once the crisis is over.

Whether it is the current pandemic or a future crisis, it is important that all businesses have a plan in place in case something this disruptive ever happens again in the future. When difficult times arise, it can be a mammoth task for businesses to overcome. However, having a step by step plan in place and being prepared can really help businesses work their way through these crises and even potentially thrive at the end of it.

If you need any advice regarding your business’ finances and future strategy, then please get in touch with a member of the Wright Vigar team. We are here to help however we can and understand it is a challenging time for everyone at the moment.   Email website@wrightvigar.co.uk