Amidst long due Covid-19 lockdown and freshly erupted protests on the Black live matter, the economy of the USA has hit the lowest in the history after 1930’s great depression and World war 2. Certainly, the effect is both on citizens and businesses alike. Due to protests, a lot of businesses have been looted and destroyed around the country. Big businesses might recover due to the size of their business model and multiple revue channel, but small businesses with 1 revenue stream are suffering the most.
So what should the small businesses like Cellphone store or electronics stores do in these crises to save their businesses from falling apart? Though there are no hard and fast rules for eveyrone, but we have a few helpful suggestions to follow.
1) Get a Loan
During these crises, federal government is providing relief to small businesses. Small Business Administration’s (SBA) Paycheck Protection Program is providing small businesses, self-employed, and independent contractors the eight weeks of payroll costs which can be used to pay interest on mortgages, rent, utilities but with some limitations. Click here for details on the program, as well as updated information.
2) Keep Expenses Low
It’s more than ever necessary to cut down your unnecessary expenses in your business and in your spending too because your business needs your utmost financial attention. Also, if you are paying loans back, discuss your difficulties with your lenders and try to work out a plan in which you can cut down the payments and if possible, delay the payments.
Another way to cut expenses, it’s to talk with your employees to discuss a plan for a pay cut instead of laying them off. Firing your employees is always the first instinct of a business owner, but when you lay off an employee, you lay off an entire family. Therefore, work out a plan like, pay half salaries to your employees during the crisis and when the situation gets better, pay them fully. Your employees will understand your position and might even work harder to get your businesses back on it’s feet!
3) Negotiate with Suppliers and Customers
For a cellphone and electronics store, the payment schedule of bills from customers is very important. Discuss with your customers for the payment to be made on time, and if possible, earlier as your business needs financial safety.
On the other hand, discuss with your suppliers about the payment to be delayed, or get it scheduled monthly or bi-monthly for a year or so. So that you can keep your suppliers onboard during the crisis and keep your sales running. If you run low on stock, you lose your customers.
Facebook and Instagram are providing loans to small businesses and also providing ease of payments on advertisements on their platforms which is helping the small businesses to keep sales running. CellSmart POS is providing message marketing to all its customers, which is helping the stores to attract their customers.
5) Keep Track of … things, very closely!
You are already struggling to keep your business up, constantly thinking about how to span out and increase more revenue stream and keep your employees employed. It may become too cumbersome or distractive to keep track of your finances, inventory, pending payments, commissions, bank deposits, cashbacks and so on. Perhaps you can use CellSmart Reconcile service, whereby all your business transactions and dues will be validated and kept in check, day in an day out, so that during all this commotion, you won’t lose track of any of your business accounting.
We believe with hard work and smart decisions, your business will survive and regain the loss in no time.