Many businesses across the world have taken some tangible
steps inspired by the recent shift in customer behavior due to COVID-19
pandemic. We looked at how the big companies are shifting their business models
and what the SaaS companies are doing to protect their business during the
pandemic.
Your best defense is to monitor your cash flowing out of your
business. You should have strong accounting setup that provides you accurate
reports on time with your cash flow analysis so that you can take informed
decisions on how to cut the costs.
Here we have presented 7 tactics to make your business immune
to a pandemic.
1. Cut Costs
This is the most obvious but the most difficult tactic to implement. Get an expense report from your accounting team and segregate the expenses into three categories namely Necessary, Negotiate and Unnecessary.
You can cancel your unnecessary subscriptions, negotiate your rentals and keep on paying your necessary costs which are related to sales.
2. Negotiate
You can negotiate reduced fees better pricings from your vendors and other suppliers.
Though these businesses are likewise dealing with the same crisis, it’s in their best interest to help the company to survive.
3. Offer a new product of service
You can help to solve problem of your customer while he is stuck at home. The pandemic
is not only creating shift in the customer behavior but at the same time creating
opportunities for businesses. I know a corporate event management company
starting Yoga classes online for corporate and individuals. At Ofin we are
helping businesses to apply for collateral free loans for small and medium
sized businesses and renegotiate the interest rates with their banks.
4. Collect payments
It can be awkward to ask for payments from customers during Covid lockdown and economic downturn.
You can always offer some discount on quick payments and thereby help your customers to save some money and manage your cash flow too.
5. Freebies
A service based business can offer a particular service at discounted rate for
limited time. This can be a great way to give people sample of your service. A digital
marketing company is giving away free service for third month if you pay for
the first two months. Remember, business people are more attracted to the value
proposition of saving money than making money.
6. Connect using technology
With coronavirus lockdowns all over the world, people are stuck at home and their
screen time has increased. Find ways to connect with your customers using
emails, social media or by attending webinars.
I will give example of Airbnb here. Airbnb changed their offering from travel to
virtual bike tours and online sangrita parties. The delivery is different but
the product is same. At Ofin we serve our Outsourced Accounting Services
clients by getting the data on our cloud drives and using VPN to store client
data at one place.
Click here to schedule a
30 minutes free consultation on Accounting services.
Thank You!