COVID-19 is the biggest threat to small businesses today. Financial assistance from the government provides temporary shelter. But ultimately, survival will depend on the owner’s ability to steer his ship to a safer shore. Keeping a close eye on your books with effective bookkeeping is important. In this post, we share other steps you can take to win in a slowdown.
1. Re-define your consumers’ problem
The crisis may have thrown your customers into disarray. Their needs are evolving as quickly as the crisis. This will include their need for your products and services. Tweaking your budget to account for changes in the way you market, sell and deliver your products and services may be necessary.
2. There are new customers waiting
Unfortunately, some of your competitors may decide to wind down or pause the business in a slow-down. To this end, it’s been said to not stop marketing in a crisis. There are opportunities still. With proper bookkeeping, you’ll know how much can be directed to sales and marketing.
3. Look after existing customers well
A bird in hand is better than two in the bushes. In a crisis, customers are less willing to experiment with new brands and businesses. If you’ve proven to be reliable, chances are, they’ll stick with you. Look after them well and you’ll be able to see through this storm. Set aside a budget for customer care programs.
4. Be sensible with discounts
There’s a reason for offering discounts. But they must be used sensibly. Pushing prices down in a slow-down can send the wrong signals. In a slow-down, offer discounts as a means of passing back to customers the savings you’ve achieved in the cost of running the business. With good bookkeeping practices, financial prudence can be easily exercised.
The ride ahead is bumpy for small businesses. But simple and effective bookkeeping practices can make it less painful. Knowing your business’ state of financial well-being is important. With a firm grasp of your numbers, you can strategise your battle accordingly. To find out more about good bookkeeping practices, get in touch today.
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