Moments of crisis such as the one we are experiencing require entrepreneurs to pay close attention to financial control, due to implications such as a drop in revenue, reduction in customers and production, absence of employees, among others. In view of this, the review of financial planning and analysis to adapt to the crisis must be a priority and financial management, which has always been essential, is now mandatory. If the company does not yet have a detailed plan, it's past time to prepare it.
Here are some basic financial management tips to overcome this moment of crisis:
1. Make an analysis of your expenses
When you know the amount of expenses to pay, it's easier to define actions. Make a survey of expenses for the coming months and, if necessary, prioritize those that will have the greatest impact on the business. Many expenses are negotiable.
2. Prepare your business for a drop in sales
The current scenario affects several sectors of the economy, some directly and others indirectly. Therefore, it is recommended that entrepreneurs simulate the impacts in the event of a significant reduction in sales. In an unstable moment like the current one, with few estimates of how long it will last, the ideal is to anticipate.
3. Adjust your spending
Faced with the scenario that affects many, renegotiating expenses is an efficient way out. Providers that are also affected may be offering more attractive prices or increasing their payment deadlines.
It's also a good time to renegotiate debts with banks, according to previous analyses. Try to adjust the installment amounts to your forecast for the coming months.
4. Do a review of your cash flow
Now, more than ever, you need to manage the company's cash flow. Have a division between fixed and variable expenses. This is because in a scenario of reduced sales, variable expenses fall by the same proportion and what weighs in the entrepreneur's pocket are fixed expenses. By dividing the categories, you have the necessary amount to maintain your business and you can plan better according to the previous tips.
5. Find other billing alternatives
Look for alternative ways to increase revenue, providing delivery services or promoting products or services, depending on your business. Flexibilize and expand payment methods and if you still don't use the promotion of products or services in digital marketing, it's time to start.
6. See opportunities in the midst of difficulties
The economic crisis brought about by the COVID-19 pandemic took many entrepreneurs by surprise and most of them are already changing their plans and routines. The home office is already official in many companies and for those that had a break, the financial reserve is being of great value.
If that's not your case, remember that there's always the side of opportunity. Expand your business vision and analyze new market trends, such as e-commerce and delivery services, for example, which are experiencing a great increase in demand during this period of crisis.
If you need to get around a time of crisis, it's essential that your finances are organized. Maintaining financial control, reviewing and reducing costs, will bring you possibilities to maintain your company and even create opportunities for growth. We also recommend that you carefully follow the announced government measures, as they may apply to your business and help maintain income.
Contact TATICCA — ALLINIAL GLOBAL, which provides integrated auditing, accounting, tax services, corporate finance, Financial Advisory, Risk Advisory, technology, business consulting and training. For more information, visit www.taticca.com.br or email taticca@taticca.com.br. Our company has professionals with extensive experience in the market and has certified methodologies for carrying out activities.
