Most people right now are staying at home to stay safe from getting infected or spreading COVID-19.Due to this, small and young businesses have been suffering from a decrease in patronage. Since COVID-19 has resulted in ample capital loss for many business organizations and corporate houses, it is imperative small businesses develop strategies for survival.This article seeks to outline some tips that businesses can follow to stay afloat.
What does Marc Mitchell Ravenscroft have to say?
Small business firms depend on the daily cash flow as their primary source of business. Surplus allows a business to save, for reasons not excluding another economic crisis. Small businesses have an essential role to play in this economy, even during the pandemic. But what can they do to survive in such testing times? Marketing and sales experts Marc Ravenscroftshares his insights below.
- It’s essential to secure the company’s liquidity
Having access to money is a crucial challenge for most small business firms. Running a business is a risky quest, with small and young business ventures especially vulnerable. In fact, only a fraction of the small businesses can carry on operations more than five years. The overhead expenses, such as payroll, costs, and leasing, allow only moderate savings for small business owners. Hence, the small business owners must prioritize the efforts to offer instant liquidity and keep the organizations solvent to avert this short-term challenge.
- Make sure of the capital value
The franchise organization’s liquidity is a small fraction of this equation. The expense of the goods in the service industry are necessarily salaries which employees receive. Also, for small business organizations, the debt loads from the SBA (Small Business Association) loans are prominent. It might create extra pressure on the business owners. Additionally, the layoffs are also a crucial issue with paid leave provisions and less demand being a reality. It is possible when business owners take external help and make the partners for saving capital. The U.S. government and various big industries are trying to support the small business firms during the pandemic. There are social media platforms, like Facebook, that have come up with $100 million grants to help small business firms. Opportunities like these should be taken advantage of by small businesses to stay afloat.
- Join hands with the policymakers
There are several proposals from Washington concerning aid for small business ventures. Today, government agencies and huge corporations can offer relief by providing loans to address small companies’ unpaid bills. More prominent companies usually postpone the payments to vendors to secure cash as COVID-19 increases the chances of economic instability. Unfortunately, small businesses do not have this luxury and desperately need policymakers to stand behind them during this crisis.
- The conventional SBA loans are accessible and easy to apply
SBA loans are a great way to increase your cash flow to support the payment of various costs. They can cover up to $350,000 depending on your needs. Usually, these loans are authorized over a decade with an interest rate of around 7%. There are no penalties, and the interest is only due to the complete balance.
Additionally, it is a good idea to approach your bank for a line of credit. You may also be able to source the home equity line of credit for your house. It is imperative you stay cautious about online lending services, as many may prove to be scams.
Filing taxes will help to speed the approval process
You must file your taxes as soon as possible if you are interested in applying for a loan. With your taxes filed, you are more likely to be accepted for a loan as your assets can be assessed by the lender.
With the ongoing crisis of COVID-19, the future is murky. As our situation is fluid, the suggestions for businesses will also change as more data becomes available.
These tactics can be utilized by small businesses to emerge successfully on the other side of the COVID-19 crisis. The objective to keep in mind is to obtain and retain the necessary resources to carry on daily operations. It is imperative small and young businesses stay active in their marketing and sales efforts to ensure brand visibility and recall value.