Coronavirus (COVID-19) limits people activities including economic ones to contain the virus. Big and small companies were affected with the ongoing pandemic. Some pivoted and done various strategies to survive present challenges. Here are some helpful ways how businesses survive today’s recession
1. Cash is king
We often hear this statement from best financial advisers that cash is king. Today, cash is very important in order to survive. Debt may be very helpful to strengthen operations but it is highly recommended to obtain more cash than debt to survive recession.
2. Create emergency fund
Creating emergency fund for your business is another way how businesses survive today’s recession. These funds can be used when you want to pivot and to continue operations in order to generate profits to pay for operating costs and most importantly, for employee’s salary.
Creating more job opportunities during crisis is helpful for the economy so that people will continue to spend even their basic goods.
“Work hard now and build an emergency fund with the income you earn so that if your business slows down, you’ll be able to get through some lean months. Your clients may be able to still work with you now, but who knows what the long-term economic effects of this pandemic will be, “Carlos Gil stated on Entrepreneur.
3. Invest your time
With the limited operating time that businesses are experiencing right now, business owners have extra time. You can have extra time to learn new things and increase your skillset that can be useful to your business.
More so, with the free time you have right now, you can spend it with your loved ones and friends. You can give yourself a little break that you have not done prior to COVID.
4. Embrace opportunity
Most business owners lose hope during crisis. Ideally, when there’s a crisis there will always be opportunity. When there’s a crisis, competition is less. You can take this time to position your business in the market.
These simple and beneficial ways for businesses to survive during financial crisis are ideal to be adopted. These tips are the takeaways of business men from previous recessions.