It’s no secret that the ongoing COVID-19 pandemic has caused slowdowns for businesses everywhere, for small businesses to large businesses alike. It takes adaptability and agility for businesses to survive. After more than a year of facing this pandemic, there are many takeaways small and large businesses alike can learn from the crisis, especially in terms of how to handle their finances. Here are important financial lessons your business can take note of!
- Record all financial transactions
Be as detailed as you can when it comes to recording your income and spending. Even if your business is slowing down, everything still needs to be recorded. If your business still has ongoing payments that need to be completed, recording them can help gain perspective and plan forward on how you can complete them in time. At the same time, keeping a clear record can also help you easily identify which of your products or services are bringing the most revenue, and which operational activities take up the most of your spending. Then, you can minimize the less important spending and save more.
- Consider your loans
Making a loan is an attractive option to many business owners who are just starting their business and need extra capital, or simply for business owners who need to survive. When handled well, loans can be a quick solution in the midst of business emergencies. However, make sure to think it through before making one. Be realistic and estimate whether the loan and its interests are something your business can pay in the set amount of time. You can do this by considering your recent revenues and cash flow. If paying back the loan looks like something feasible for your business, go ahead—if not, it might be best to refrain from making one.
- Be prepared
At the start of the COVID-19 pandemic, many business owners are taken aback because they definitely did not see it coming. Even now, none of us knows when the crisis will end or when there will be another one. Take this pandemic as a powerful reminder of the importance of being prepared with emergency funds. Start setting aside some funds for future crises. Set a target for the fund to be enough for running your business for a few months, and strictly use the fund for future crises only.
- Acknowledge the importance of customers
This crisis has also taught all of us that customer loyalty is priceless and loyal customers are more valuable than new ones. In a time where businesses need to cut costs and customers are living within stricter financial means, businesses are so fortunate to have long-time loyal customers who still stay and even recommend the business to their friends and family. Make sure to keep nurturing that relationship! Maintain an excellent product and service quality, and be aware with their needs.
When businesses invest in showing customers how much they care, then they can count on those customers to bring steady revenue despite the crisis. That’s why getting to know who your customers are, what they like, and how they behave, is crucial to engage them and reward them accordingly. By increasing your customer loyalty and customer retention, your business has a much higher chance of surviving in the face of crisis.
TADA has helped many businesses with loyalty and retention solutions. Don’t hesitate to contact us and learn more about our features. Let us be hand in hand in sustaining your business for the long run!