Today I promise.............
Hi everyone Aldo here, firstly I would like to say I hope you are all well and safe during these very difficult times. As much as we want our businesses to succeed, our health is always number one.
I haven't posted for a while, nor have a posted consistently, I've been working behind the scenes and not giving much respect to telling my story about Zeolla. I was once told sometimes we need to say something out loud to make it real, so here I go.
I'M GOINING TO START TAKING MY BLOG POSTS SERIOUSLY AND POST CONSISTANTLY.
and saying that I am going to start my story from today, the situation we are in and moving forward. Maybe one day I will write a post of how I go here ! So let's begin with today's post:
Keeping Your Business Alive: How To Deal With Current Coronavirus Situation
The Coronavirus pandemic is an unprecedented situation; all over the world, hundreds of thousands of people are infected, tens of thousands are dying, hundreds of businesses are closing down and thousands of people are finding themselves without a job. We are all experiencing something we never thought we would. We’re witnessing history.
If you are like us, the COVID-19 pandemic has literally brought business to a grinding halt; all sales have literally stopped and a company without sales is like a body without oxygen – it dies. We are writing this article to share our experience on how we are dealing with this situation, with the hope that it 1) reassures you, as a business owner, that you are not alone in these challenging times and 2) serves as some insight and help on how to tackle problems systematically and pragmatically, to safeguard your business which will help you come out of this soul crushing time, stronger.
Here are my points on how to deal with COVID-19 for business.
Forecast & budget
The first thing we did as soon as the COVID-19 situation hit was look at our monthly budget sheet to determine what our runway looked like with our current revenue & cost forecast. A runway is basically the amount of weeks/months/years the company can afford to continue operating without any, or very minimal revenue coming in, with the current costs.
Stop all extra costs & reduce waste
Through the budget sheet & financial forecast, we could easily identify areas where we could take immediate action to save costs. We cut back or completely stopped certain unnecessary costs such as certain advertising campaigns which would not yield any revenue due to the current situation. As an example: it’s pointless to advertise for wedding favours when all wedding were being postponed, but instead we concentrated on advertising about weddings being postponed and offer a crazy deal almost at cost price.
Apply for government relief packages
The government has announced a series of relief packages, visit the government website, or speak to your accountant for ways to get help.
Negotiate better rent conditions
We called our landlord and explained the situation and asked for a reduced rate in our monthly rent bill and better conditions in our payment terms. We usually pay an amount upfront for our utility bills & also pay 3 months in advance. Our landlord was gentlemanly enough to reduce our monthly bill by 20%, cancel the utility bill payment and also allowed us to pay month by month. This alone is a significant relief on our cash flow and we encourage you to negotiate a better deal for your company.
Collect as much money as possible, fast
Whilst new sales might have come to a complete stop, there might still be outstanding payments which you still need to collect; perhaps some clients haven’t paid their invoices in full, or are on a part-payment scheme.
Stick together, help those in need & give back to the community.
COVID-19 has, and will continue to teach us lessons, not just as business professionals but also as human beings. At the very least, we learned that we cannot take anything for granted. We learned how crucial good health is to the entire human population and without good health, we really have nothing. We learned the importance of friends, family and colleagues. We learned that we are all in this together, we are one big chain. Let’s use this experience to reflect and help those in need and give back; whether it’s an elderly family member, a spouse, child or colleague.