Coronavirus has taught us firsthand that every company, be it big or small, must prepare for crises. It is especially hard for solopreneurs including salespeople that have to handle it alone. These crises could arise in the form of natural and human-made disasters. Crisis management is how a business, organization, or solopreneurs respond to unexpected unfavorable circumstances that can harm its management, operations, and finances.
During a crisis of whatever sort, a business or salesperson must be frugal with its expenses and finances at large. Lack of proper financial management can force the organization out of business.
Here are some tips on Managing Finances During Crisis for Businesses and solopreneurs…
Pay More Attention to Cash-Flow
There is no better time to pay more attention to cash flow than when there is a crisis at hand. If anything, you cannot allow your expenses to outweigh your income.
Regulate Your Expenditure
You as the owner of a small company or only an ordinary salesperson may have to put stringent protocols to ensure that you can account for every single penny spent. You could increase your levels of approval to put in checks for expenditure and discourage excessive spending.
You could also have a regular internal audit to check for excesses in transactions constantly. It will keep every employee of yours on their toes and create a sense of accountability in them.
Cut Down Day-to-Day Expenses
Increasing expenses might drive you to the point of no return in business management. You have to cut down your running expenses when dealing with a crisis. As a salesperson, you need to be prepared at all times and this includes cutting down expenses. Designing new operations that will allow you to spend less on the running of your operations will help you navigate through crises when they arise.
Re-evaluate your Budget
Most companies, businesses, or solopreneurs have a budget designed at the start of every business year. Often, these budgets could have been designed before the commencement of the crisis. One of your responses in crisis to protect your finances should be calling back these budgets for re-evaluation.
During your new evaluation, you should be shrewd with every item on the list and how funds are allocated to every project. It would help if you looked out for excesses and ways to cut down the budget without a drastic effect on your operations and productivity.
Shed Off Weight
During a crisis, small or big companies and especially solopreneurs cannot afford inadequate services. It may mean you have to let go of your weak employees who are not delivering efficiently. Shedding off these extra weights will help you save a lot that could keep you in business through a crisis.
While retrenching staff, you should be thorough with the process so that you are sure to keep only your best hands with a track record of excellence. It is important because laying off some employees will mean more workload for retained staff. You have to be sure that this will not diminish productivity.
Use Professional Services
During a crisis, managing all of your operations by yourself, especially when you know you do not have professionals take care of those processes, could be risky. Even if you are a solopreneurs you should have the best of hands-on all parts of your operation, and it is okay if you can’t get this done by yourself.
You can always employ the services of professional bodies or companies for your operations. It is advisable to outsource some departments so long as you make sure that you collaborate with the right company for the job. You might want to partner with a global PEO if you are interested to outsource your HR department.
Manage Your Customer
The crisis at hand may be a global one as experienced with the COVID-19 pandemic outbreak. In this case, you should also consider that your customers will be greatly affected by the hit, and it may harm their patronage.
You may have to reposition your small or big business in a way that shows some level of commitment to your customers and make offers that will encourage continued patronage. For example, during the lockdown, a business could make arrangements that will allow customers to get their products and services of their choice at the comfort of their home.
One can also offer promotions, especially if you realize a decline in patronage from your customers. You should understand that the bulk of your income is from your customers, and you should not neglect them while you are focused on solving every other problem during a crisis.