Before I go into considerations for surviving the current situation as an entrepreneur, I want to talk about self-care. We all know what the issues are. To analyze, plan, and get on top of this, we need to ensure that we are healthy, safe, and in a good mind space. Establish routines, talk to as many people as possible, and make the most of the current situation. Most importantly, focus on things you can control.
For entrepreneurs, cash is everything right now, and there are seven places where you can look for cash in your business: price, volume, cost of goods sold (COGS), overheads, accounts receivable, inventory, and accounts payable. It is crucial that you work out -given your current revenue and funding (equity + debt) availability- your scenarios, and establish a path forward to optimizing cash.
Now business owner, you again have to have to spend on revenue generating ventures so that whatever you put in your business as cost will come back as revenue in multiple times. This helps you to sustain your business in covid-19.
Limit the your advertising cost in print, radio and television but create your own social media platforms for free or less expenses to reach more people in your area of business or globe. You can comment on this website for assistance in creating powerful social media channels for your business by leaving your contacts.
You have to be more innovative and creative during this period by changing your production line or shifting from your traditional business focus to another business line to maintain or increase the demand of your products. You have countless times heard during this period that some fashion designers are now producing nose mask to survive not that they were doing it before covid-19 but creativity has caused that.
Measure the productivity of your employees to commensurate the allowances or salaries you pay them. Those whose output are less or equal to their pay do not have a place in your business. Remember, whatever decision you make today should bring in more revenue than cost. Covid-19 has come to stay and we must always be proactive and creative to survive or else your business will collapse.
In conclusion, make a holistic assessment of your business as an entrepreneur to cut off certain expenses and put in more effort into revenue generating ventures.