If you own a business right now, you are probably well aware that disaster can strike at any time. The current pandemic has created uncertain cash flow and unexpected restrictions, and many business owners are feeling anxious about the future.
If you can relate to this, it may be time to create a proper crisis plan (and even if you’re not worried, it is always best to have a crisis plan in place for the future). After all, a great business owner always has a plan for the worst case scenario!
Here are five tips to help you create a crisis plan so that you can protect your business from disaster.
1. How To Protect Your Business From Disaster: Conserve Cash Flow
If your business is experiencing a crisis, the first thing you should do is consider conserving your cash flow. The current pandemic has made it impossible for most businesses to open normally, so many business owners are experiencing fewer sales and reduced profit. This can be very scary, but if you reduce your purchases and expenses you may be able to stay afloat and maintain your credit score.
So sit down and assess your budget; can you reduce bills for now? Should you make fewer purchases? Are there any financial relief options available to you? You can use a free budgeting app (such as Mint) to make this process as easy as possible.
2. Check For Suspicious Activity
Scammers tend to take advantage of people during times of fear and uncertainty. This is certainly true with the current pandemic; thousands of business have already reported being scammed by fraudsters, and many websites are now detailing the most common scams. So watch out for any texts or emails you get that offer support; always check that they are legitimate before responding, and block any email that you know is a scam.
3. Use A Credit Monitoring Service
It can also be useful to use a credit monitoring service during times of uncertainty. This means you are less likely to have your date stolen, so you have a reduced chance of dealing with scammers or a bad credit score. There are lots of free credit monitoring apps available, so take some time to find one that suits your business best.
4. Contact Creditors
If you are struggling with your finances (maybe due to the pandemic, or maybe sales are down due to bad publicity), you may want to consider contacting your creditors to let them know about your situation. This can be a terrifying prospect, but most creditors are more willing to work with businesses who let them know they are struggling with finances.
For instance, tens of thousands of businesses are struggling with their finances right now, so most creditors have created deferred payment plans for businesses. These options may be available to you too – just speak to your creditors to find out if they can help you.
5. Stay Informed And Look Forwards
Finally try to stay informed and positive. During a crisis it can be tempting to hide away, especially if you are feeling anxious and stressed, but the best thing you can do for your business is stay up to date with the news and government advice. It is also important to focus on a positive future; remember that this stress won’t last forever, and when it ends you can finally get back to normal with your business!