April 24, 2020

9 Ways to Keep Your Business Alive During COVID-19

The global economy has forever been changed, all due to the emergence of the virus known as COVID-19.  
Let's be honest, the way we used to operate business has ceased.  We have all been thrown off balance, and are finding ways to cope with this new normal. With the immediate shut down of nearly every small business in America, many owners have found themselves frantically searching for ways to stay afloat, with some even considering closing business permanently if they cannot find ways to either cut down costs or generate revenue.  If that wasn't enough of a concern for our economy, many owners have been forced to terminate or furlough quality and loyal employees, subjecting owners and employees to unemployment options.  As the world navigates through this new terrain, it is crucial that businesses become flexible and creative to keep their doors open.  Many business were comfortable with their operations prior to the shake up.  Now, by force, owners MUST become more open minded to new ways of doing business.  Below, we have comprised a list of 10 ways businesses can directly decrease their expenses (payables) and/or increase their revenue (receivables).

1. Increase Online and Phone orders.
(Increase Revenue) 
If your company has not made the switch to sell products and services online, now is definitely the time to do so. Find creative ways to promote items that are high demand especially in tough times like these.  Of all the industries experiencing loss right now, e-commerce businesses are soaring.  Many buyers are forced to shop online for many necessary items.  They are also not able to try on, feel, smell, see anything they used to purchase at stores.  All brick & mortar business must add this crucial component, not only to survive a pandemic, but to survive the business world in general.

2. Automate your operational processes
(Cut Costs)
The days of paper, file cabinets, and manual check processing are over.  Now that businesses are forced to consider work from home solutions, many find that they cannot fully operate from home because they are dealing with security and process restrictions (i.e. needing someone to go into the office to cut vendor checks).  Some traditional business owners are intimidated and/or paranoid about cloud-based softwares and transitioning fully to online systems, but we are quickly approaching a time where this may become mandatory.  Not only does automation provide efficient processes, but it saves companies thousands of dollars annually. This is where Qrunch Accounting focuses its efforts.  It is better for companies to proactively set themselves up for this new age of business, before the world forces them to do so.

3. Partner with other complimentary small businesses
(Increase Revenue) 
In times of crisis, it is easier for us to think about ourselves, our struggles, and our finances, however, more than ever we need to think about others and unite together.  The only way to protect local businesses is to support one another.  Yes, customers show their support by making purchases at these establishments, but also businesses can support other businesses in different ways.  There are many businesses that can compliment each other, and share clientele.  For example, us bookkeepers understand that all our work is necessary for month-end financial reporting, and tax prep.  Partnering with a CPA or small accounting firm who is in need of help right now, and vice versa, would prove to be valuable and keep both businesses afloat in these times.

4.  Outsource small tasks 
(Cut Costs)
Virtually outsourcing tasks that an assistant can help with, can save your company a lot of money. With virtual assistants you typically pay a smaller contracted amount compared to the amount of a salaried employee.  Depending on the vendor, usually you are still assigned a live-person.  Whether it is reception, admin tasks, accounting tasks, or sales, these roles can be outsourced to help companies relieve their payroll but still be effective and efficient. Qrunch has taken it a step further, by creating an employee partnership program that allows business owners to cut down on accounting payroll expenses, while providing an income solution to their employees at the same time.

5. Add products or services that can help "essential businesses" 
(Increase Revenue)
Across the nation, we see a beautiful example of many fashion companies using their skills and resources to help hospitals with protective gear.  This is one of many ways we can help keep "essential workers" safe, while still generating some sort of income for small businesses. Other ideas would be to deliver food and supplies for nursing homes, and supermarkets.  There is no limit to how creative we can be, but make sure your ideas are truly to help other establishments (i.e. absolutely no price gauging).

6. Find a product or service to deeply discount.
(Increase Revenue)
Although this may seem like you are decreasing your revenue, giving your customer base a trial, discounted priced items, subscriptions, or packages could increase your quantity sold.  Like you, your clients are looking to save money right now, and if you keep their needs in mind you will establish loyal customers, while also making at least some revenue, and that is better than making no revenue at all. 

7. Extend your refund & exchange policy
(Increase Revenue)
Right now customers are not able to try on clothing, shoes, or accessories.  Car shoppers are not able to test drive vehicles.  Furniture shoppers cannot visualize pieces in their space.  There are still shoppers who are looking for these tangible items, and extending your refund policy, will make them feel more comfortable purchasing your items online, knowing there is more time to get a feel for it.

8. Cut down on unnecessary office expenses 
(Cut Costs) 
You do not need new staplers, post its, break room coffee, or snacks. Cut supplies down to the bare minimum.  An example of a necessary office item would computer supplies, especially if your team is operating remotely. Remote work should also cut down the amount of money spent on paper, which could save your company hundreds of dollars (and save the environment).

9. Offer a money-back guarantee 
(Increase Revenue) 
An alternative to offering discounts or specials on certain items, services, packages or plans, is offering a money-back guarantee.  This will allow you to keep your pricing the same, but give customers more incentive to purchase right now when they may have be reluctant otherwise.

We hope these tips bring some fresh perspective to business owners, especially in these upcoming weeks.  We understand that many owners are facing deeper threats to their business, and are forced to make some tough decisions for their future.  At Qrunch Accounting we are dedicated to 1) Helping keeping small businesses active in the market by offering accounting solutions to drastically cut down their expenses, and 2) Protect the security of accounting employees by offering an alternative income opportunity to keep them providing for their families.  For a free consultation, call 470-250-8180 or email hello@qrunchaccounting.com.