Having worked alongside small businesses through good times and bad, we understand that uncertainties can be unnerving. In this period of economic uncertainty, we’re committed to helping small businesses adapt and thrive in this new environment.
1) Increase Your Cash Flow Apply for a line of credit with your bank in order to have access to an instant, reliable source of credit. Unlike term loans, which provide a lump sum that you use once and repay once (plus interest), a line of credit is “revolving.” This means that you can tap into it as you need it, when you need it. This flexibility makes it a popular choice for micro and small businesses. A line of credit makes a reasonable, long-lasting solution for short-term cash shortages—like those that come from a temporary economic shock.
Another way to improve your cash flow is to experiment with your payment processes. If one of your customers typically pays in 45 days, consider offering a 3% discount if they pay within 15 days. Additionally, sending automated payment reminders via your invoicing system is another easy-to-implement, yet effective measure you can take.
2) Increase Your Marketing
It might seem counterintuitive to spend money, but you’ll be well positioned to thrive in the long run if you spend when everyone else cuts their marketing budgets. Your advertising spend is guaranteed to reach more users for the same price, and there is less competition for similar audiences leaving you an opportunity to step in and capture a larger slice of market share. However, it is important to be prudent with your investments of money and time. Instead of singularly focusing on paid ads, you can also focus on developing valuable SEO content to increase your positioning. Video and podcasting are two mediums making a surge right now and our clients have found that when they create helpful, valuable videos, they are improving their search ranking and client attraction.
During a time of crisis, crafting the right messages, protecting your stakeholders, and maintaining your competitive edge can be challenging. Work with your Virtual Assistant or marketing pro to craft your messages and communicate with who matters most to your business.
3) Ask for what you want: Request better interest and insurance rates. Call your banker and insurance broker to get the best rates available on the market. Many of these companies are lowering their rates in light of the current situation, so make sure that you have the best deal. As you invest the time in spending less on these line items now, you'll save more money in the long run.
4) Outsource By outsourcing your work to a Virtual Assistant, you eliminate the costs of turnover and reduce how much you spend on benefits, payroll and office space for full-time employees. You also increase business efficiency by having access to the skills you need without having to train new staff. As many companies have grown to learn, conducting business virtually is very possible and also an effective way of eliminating a multitude of overhead costs.