As we’ve seen over the last 7 months, the world can change in the blink of an eye and leave the rest of us to figure out the mess. “Yelp Inc., the online reviewer, has data showing more than 80,000 businesses permanently shuttered from March 1 to July 25. About 60,000 were local businesses or firms with fewer than five locations. About 800 small businesses filed for Chapter 11 bankruptcy from mid-February to July 31, according to the American Bankruptcy Institute, and the trade group expects the 2020 total could be up 36% from last year.”
With all of that data in mind, it’s important for Virtual CFOs like us to share information that can aid business owners in their success even during pandemics. There are 5 things you can do right now as a business owner to help your business during COVID, and we’re going to share them with you in this blog post.
The first thing you need to do as a business owner is to stay flexible. As we’ve seen, there is no way to know what can happen in the market and across the country. We were told many times that things would go back to normal, only for restrictions to tighten and businesses to remain closed. We recommend complying with your state and county ordinances to avoid unnecessary fines or closures. Be open to trying new ways of running your business and get creative if it means that you can still bring in a profit.
For example, restaurants started offering curbside pickup and delivery. Retail stores moved their inventory online, and nail salons started operating outside. None of this is ideal per se, but it did allow these vital industries to continue operating even during hard times.
Now is the time to review expenses and figure out any ways to https://thevirtualcfogroup.com/cutting-costs-in-a-virtual-workplace/cut unnecessary costs. This is when having a Virtual CFO comes in handy because they can analyze your expenses and income and determine which expenses can be cut and which ones are necessary. You want to avoid making rash decisions that can ultimately hurt your business even more. Some expenses might need to be temporarily paused and that budget needs to be shifted to fit your new operating methods.
COVID was a perfect example of how important it is to stay ahead of the curve and analyze your competition. Many industries had both success and failure because of business owners’ ability to get creative or ultimately crumble under the pressure. You’ll want to take a look at your competition and your industry as a whole and see what other innovative business owners are doing.
A great example is restaurants offering meal kits or DIY dinners so customers can get creative at home while still enjoying the same food. Beauty salons offered take-home kits to prevent their customers from chopping their hair off or using cheap dye. These smart business decisions were the reasons why many business owners stayed afloat.
Have a Backup Plan
Every business owner should have a backup plan in case things go south. Whether you’ve been in business for 20 years or 2 months, you should always have a plan that you can turn to if your location is closed, the internet goes down, or in this case, a pandemic arises. A virtual CFO can help you create a backup plan if you don’t have one already. This plan should include ways to operate, cut costs, improve marketing, and stay ahead of your competition.
Hire a Virtual CFO
The last tip we recommend is hiring a Virtual CFO on your team. A Virtual CFO is capable of handling tasks like managing accounts, scaling, taxes, investments, raising capital, and much more. They are the brains and numbers of your business and can help you make strategic moves during crises like COVID-19.
What’s great about a Virtual CFO is you don’t need to have them on a salary and pay them benefits because they work on a retainer basis. This makes it easy to fit into your budget and remove the need to hire another full-time employee. If you’re interested in what a Virtual CFO can do for your business, reach out to us and schedule your free consultation today!