The impact of COVID-19 on business cashflow and how to deal with it

The sudden outbreak of the Coronavirus has affected the entire human race single-handedly. Businesses are shut down, large populations in isolation, and the normal day-to-day activities are getting affected.

With everything being eyed as the prospective carrier of the virus, the currency is also under invigilation. Because of this, the cashflow in the form of physical transactions has gone down. Even though there is a shift and acceptance towards online transactions, purchasing powers are decreasing.

Businesses are almost shut or halted with almost negligible cashflow, impacting every concerned individual’s life. The automobile industry, the luxury goods industry, garments industry are the worst to get affected after the tourism and hospitality industry.

The situation is tense, but here are a few measures you can take to rise back amidst the crisis and help your business sustain.

Increase your online presence

Today seven out of 10 businesses are moving online in order to reach more customers and offering home deliveries to derive more sales. With changing times you will also have to adopt the new normal and give more modes of interaction to your clients. Move your store online with the help of a website/app. Run a successful online business with the changing times.

Opt for online payments to initiate more sales

The world is trying to avoid any possible contact with possible virus carriers. And currency notes have not been spared. With many reports and rumours of a virus getting spread through cash, online payments and digital transactions are gaining popularity not just between millennials, but baby boomers too. Therefore, become more aware to the changing times and carry out transactions with an even smarter alternative. Don’t forget, online transactions have more pros, and more so in today’s world.

Encourage remote working

Because of social distancing, companies started working remotely and that has proven to be more productive. Remote working is all about coordination. Practise some common rules to be efficient in coordination while working remotely such as automation of workflow, online management tools, communication tools, and sharing tools.

Market yourself on the right platform

Your audience is stuck at home. They cannot reach you physically. But you have created a platform to reach them virtually. Now market your self to let your target audience know you’re open. Take use of more social media platforms to be more relevant and reach your clients. Just make sure to focus on the right kind of messaging, constant communication, and marketing strategies are relevant enough to help your brand communicate itself.

Avoid unwanted expenses

The penny saved is the penny earned. It is the right time to understand the utmost need for it. The situation is getting worse with each passing day with more than 14 million people getting affected and the graph is still rising. Therefore, as a business, it is important for you to understand the value of every penny earned. Avoid any kind of avoidable expenses or postpone them. Indulge in the most needful business activities and encourage optimum utilization of each resource.

Consumption patterns are changing across the globe. Businesses and economies have already started towards unlocking themselves and carrying out activities in the new normal way. It might mark as new opportunities for businesses to rise, you just need a conscious eye to find out the best amongst all. Till then do not forget to stay safe and ensure the best safety measures for your clients.

Veronika Tondon, senior content writer, Invoicera 

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