The Corona pandemic is affecting every part of our society and therefore, of course, the backbone of society, which consists of small businesses. To help you keep your business going in the best possible way during the pandemic, we would like to give you some tips on how to do this.
##Tip 1: Create a liquidity plan
The very first thing you should do is create a plan that measures your liquidity. You should find out exactly how much money you are taking in and how much money you are spending.
It's very handy for you to be able to track all your sales online automatically. For this, we recommend our software that allows you to create and store invoices online and even for free.
Once you have done these steps, you should continue to find out how many months you can keep your business going without new orders. This way you will find out if you need to act fast or can wait out the pandemic.
##Tip 2: Minimise expenses
Normally, self-employed people are advised to reinvest a large part of their profits back into the business, but at the moment it would be smarter to park your money in safety and build up an iron reserve.
To this end, you could consider selling any company vehicles that cannot be used during Corona or make similar savings elsewhere. In this way, you can ensure that your business can last longer, so that you have a functioning business even after the pandemic.
The most important thing that businesses should focus on at the moment is keeping your business going.
##Tip 3: Review your business model
The break that Corona is giving your business is the perfect time to think about fundamental restructuring.
If your business model relies on walk-in customers or is severely affected by the pandemic and lockdown regulations in other ways, you should think about new sales channels.
For example, consider restructuring your business into an online retailer. Another way to adapt your business model is to offer pre-orders. With pre-orders, you can generate future sales now, which will help you raise the money you need. With this money, you may be able to steer your business through the crisis.
##Tip 4: Take advantage of government grants
Depending on which country your business is based in, you may be eligible for subsidised loans that can help you keep your business going. This way, you can get cheap loans or even interest-free loans from your government to help you ensure the continuity of your business.
Some countries even allow these loans to be non-repayable under certain circumstances. If your state offers you the opportunity to use money from the state, then you should definitely take advantage of this opportunity.
Make the most of your options, because the state is the best chance for you to get money during the pandemic.
##Tip 5: File for insolvency
If you are not sure whether your business can survive the crisis, you should look into the issue of insolvency. By finding out about your options early on, you can ensure that you do not make any rash decisions, but have enough time to weigh up your options.
Of course, no company wants to admit that its business will not survive the crisis, but in these cases it is safer for you to inform yourself so that you do not slip into personal insolvency.
##Tip 6: Guarantee safety in the company
If your employees are currently still working in the office or on site in your business, it is especially important that you think about an effective hygiene concept.
Your top priority should be to prevent your employees or yourself from becoming infected with the virus.
If there are cases in your company, the situation will only get worse for your company. For example, it may lead to quarantine for the entire team, which would cripple your company. Therefore, you should keep in mind that your hygiene concept must be adhered to when making any decisions. This way you can minimise the chances of infection and reduce the risk to your employees and yourself.
##Summary Currently, it is important for a business owner to think about the continuity of their business. To do this, you should make sure that you minimise expenses and, if necessary, adapt your business model so that you can continue to generate revenue during the pandemic. If this is not possible for you, you should find out about government aid and loans that you can take advantage of. This way you could gain some important months for your business. If none of these paths is realistic for you, you should prepare for insolvency early and inform yourself. Last but not least, you should also make sure that none of your employees or you yourself are infected with the virus. Therefore, you should follow an effective hygiene concept.