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Turn COVID-19 crisis into opportunities

3 things you need to consider to stay ahead in business

The rapid spread of the Coronavirus, also known as Covid-19, has affected all of us. Many countries are on lockdown, the busiest street now seems deserted, public places have been closed, and events have been cancelled. All these situations had an enormous impact on our lives. Not only that, but it has also affected our business and economy. Many businesses are encouraged to stop their non-essential functions for the sake of social distancing and to stop the spread of the virus. 

As bookkeepers, we understand the damage this can do and have done on the businesses. Many small-business across the country have already observed a negative impact on their financial position. Furthermore, a record-breaking number of companies are filing for bankruptcy or closing down. For many industries, the numbers are assumed to get worse. These business should consider turning COVID-19 crisis into opportunities.

From the economic point of view, we might be on the verge of massive transformations, and its consequences will be visible for the years to come. And while the business environment is guaranteed to change, there are several steps you can take to keep your business operations afloat. Most importantly, the key to facing this pandemic is to stay positive, look for opportunities and not panic. Therefore, we’ll like to suggest some useful tips that you can use to mitigate risk, minimize the potentially detrimental consequences, Incas opportunities and stay ahead during this pandemic. Check them out!

1. Digitalise your bookkeeping:

During the lockdown, it has become hard to maintain the books of accounts, especially if you do not use online bookkeeping software. Thus, our first tip is that you contact the bookkeeping service providers who are experts in the software such as Xero and start maintaining your day to day accounts digitally. Transferring your accounts online will help you in getting real-time assessments. By following this simple tip, you will be able to track your unnecessary expenses against the revenue and reduce them. During this contagion, it is crucial for firms to conduct a precise assessment of their variable and fixed costs as well as the present revenues.

Moreover, it is proven that keeping a close eye on your day to day transaction can help you in making various financial decisions. It will help you to track your liquidity and investment capacity. This assessment will provide a fair understanding of the business’s financial position and assist you in planning your next step in the current disconcerted environment. 

• Communicate with stakeholders and keep them updated:

Our second tip to you is that you should plan out an effective way to communicate with your stakeholders, most importantly, your customers and employees. Your employees rely on you, so keep them updated about every development. You should keep them abreast of significant developments so they won’t be surprised if there is a sudden change in the business operations. As a businessman, you need to keep your employees engaged and stay in touch with them through video conferencing applications such as Google meet and Zoom. 

Additionally, it would help if you also remain transparent to your consumers about what your business is going through. Customers can sympathize with companies facing a crisis, as long as the communication is effective and transparent. 

The idea is that we are in this together, so make sure that your stakeholder knows about the strategies you are preparing to create a safe environment for your employees and customers. This will help you to build a rewarding relationship with them, which you can encash in the future.

• Don’t panic, but don’t be in oblivion either:

We are currently living in a rather uncertain time; the business environment is changing rapidly, so it is essential to be prepared for both the threats and the opportunities. For instance, with sales going down and consumer spending less, you might need to adopt alternative sources of income to support your business operation. If the business is still going well, you should try to put more money aside for an emergency. You should also contact your credit card companies to see if you can extend your credit or if they have a relief policy in response to the Coronavirus crisis.

Further, if your merchandise, services, or business model can be driven to assist people and address problems associated with the current situation, you can shield your business by aggressively tracking such opportunities. Contact the experts at your company and work on plans to respond in a way that can boost sales. 

So, our final tip to you is that, put on a decent pair of trainers and be ready to encash the new opportunity that comes your way. Good luck!