1. Update Your Financial Plan
Know what coming in and what’s going out if you have been operational throughout the pandemic and what will be going out and coming in for you to revive your business back up.
Prepare a cashflow so that you know what you need and where you are for those that are reviving back, prepare a forecasted cashflow that will help you do projections for your business.
Three steps to creating your financial forecast
- Gather your past financial statements. You’ll need to look at your past finances in order to project your income, cash flow, and balance.
- Decide how you’ll make projections. What assumptions you will make.
- Prepare your pro forma statements. These are financial reports issued by an entity, using assumptions or hypothetical conditions about events that may have occurred in the past or which may occur in the future.
Plan for at least a four-week recovery period so that you can review and adjust as the economy recovers.
2. Create a Business Budget
A business budget is an overview of your business’ finances. It outlines key information on both the current state of your finances (including income and expenses) and your long-term financial goals.
Creating a business budget helps you make business decisions and keep you grounded in your expenditure.
Reach out to us we shall help you create a custom budget for your business. Email email@example.com
3. Seal Any Leaks
Small leaks can sink a big ship. Look out for those miscellaneous costs and
small expenses. Reduce losses and unnecessary expenses as much as you can. At recovery you will need to stay ahead of the game:
- firm up orders
- purchase materials/ stock in advance
- recall employees
- reconsider cheaper options/ DIY
- Develop sustainable strategies to running your business
4. Explore Funding Options to Recover
Unless your business was thriving during the pandemic, most businesses were affected as profits and capital is running dry you need funding to jumpstart your business back during a COVID-19 rebuilding period.
Here are 7 funding sources ideas;
- Bootstrapping. The funding source to start with is yourself.
- Bank business loans.
- Angel investors.
- Venture capital.
- Loans/ Investments from friends and family
- Crowdfunding sites
Tale advantage of the available funding options for businesses available both by the Government and Donor organizations. For example Google has set up a recovery plan for businesses, get access to finance, helpful tools and services, and government support for its partners through the Rise Up campaign.
5.Adapt; build resilience
If you need to go digital to survive then do it. If you need to expand your solution offering, the do it, if you need to re-strategize and rebrand the by all means do it. Just adapt!
If you can offer home deliveries, rethink on how you can still sell keep brainstorming how best you can keep business flowing. One of the ways you can build a resilient business is by being more proactive operating cost cutting, the healthier your business is today, tomorrow, and the next quarter, the more resilient you will be in an economic crisis.
Here’s a small business resilience toolkit developed by Facebook that will help you assess your recovery back. This toolkit will help you;
• Identify the business activities that are essential for continued
operation during a disruption
• Plan for risks that affect your business
• Create an easy-to-use resiliency plan tailored to your business,
giving you a plan in the event of a disaster.