If you manage a business of any kind, it’s likely that the coronavirus has put the company under financial stress.
While you are still in the process of adjusting to a ‘new normal’, you must pay attention to financial pitfalls. Learning to avoid them will give you a far better shot at overcoming this tough period to achieve sustained success.
So, what are the key financial mistakes that you should aim to avoid? Here’s all you need to know.
#1. Overspending On Utilities & Services
Most companies have experienced reduced revenue in recent weeks, and it could last for several months.
While you will need to focus on increasing your sales volume too, you must learn to trim the fat from your overheads. Price comparisons on utility bills and insurance are a good starting point. It may also be possible to negotiate repayment terms with creditors.
This period of transition can also be used to implement new techs, such as cloud computing or VoIP telephony systems.
#2. Not Claiming Back ALL Entitlements
In addition to spending less money without compromising your output, you should seek all available help.
Research and Development tax credits are of particular note during this transitional phase. Visit Tri-merit.com to learn more about this. However, there are various other tax benefits and financial safety nets that are currently offered to SMEs.
The government appreciates that this is an unprecedented time and will try to reduce the number of business casualties. But only you can reach out for help.
#3. Ignoring The Need For A Positive Workspace
The condition of the work surroundings has always influenced productivity and output.
However, COVID-19 has created an increasingly drastic situation. You have a human responsibility to keep offices clean at all times. Meanwhile, staff members should be provided with masks, hand sanitizers, and related items.
Otherwise, the threat of viral spreading can lead to serious problems, including a depleted workforce. On a similar note, maintaining a sense of morale should be high on the agenda.
#4. Not Adjusting Prices TO Reflect The Times
In addition to impacting businesses, the coronavirus has hit individuals very hard. Many consumers won’t have the same level of disposable income as before. Likewise, evolving life perspectives mean they’ll almost certainly seek increased value for money.
Running timed promotions may reduce the profit per item, but could be the key to maintaining overall profits. More details can be found at Crazyegg.com. As long as your bottom line improves, that’s the main goal right now.
#5. Leaving The Company In A Vulnerable Place
Many business owners now have their attention primarily focused on restoring functional stability. Sadly, it is a situation that many cybercriminals will hope to capitalize on.
Failing to protect the firm’s computer systems and big data is the biggest mistake of all. Intellectual assets should be protected too. The fact that you may use remote workers more frequently from now on should encourage you to use non-disclosure agreements.
It’s a harsh reality, but if you leave yourself open to attack, you’ll only have yourself to blame. Now more than ever, it’s better to be safe than sorry.