Moments of crisis like the one we are experiencing require entrepreneurs to pay close attention to the control of finances, due to implications such as a drop in revenue, reduction of 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 the management of finances, which has always been essential, now becomes mandatory. If the company still does not have a detailed plan, it is past time to prepare it.
We list some basic financial management tips to overcome this moment of crisis:
1.
Analyze your expenses
When you know the amount of expenses to pay, it becomes 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 falling 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
Given the scenario that affects many, renegotiating expenses is an efficient way out. Suppliers who are also affected may be offering more attractive prices or extending their payment terms.
It is also a good time to renegotiate debts with banks, according to previous analyses. Try to adjust the values of the installments to your forecast for the coming months.
4. Review your cash flow
Now, more than ever, you need to manage your company's cash flow. Have a division between fixed and variable expenses. This is because in a scenario of reduced sales, variable expenses fall in the same proportion and what weighs on the entrepreneur's pocket are fixed expenses. With the division of categories, you have the necessary value for the maintenance of 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. Flexibility and expand payment methods and if you still don't use product or service promotion in digital marketing, it's time to start.
6. See opportunities in the midst of difficulties
The economic crisis brought on by the COVID-19 pandemic took many entrepreneurs by surprise and most of them are already changing their plans and routine. The home office is already official in many companies and for those that had a breather, the financial reserve is being of great value.
If this is not your case, remember that there is always an opportunity side. Expand your business vision and analyze new market trends, such as e-commerce and delivery services, for example, which are registering a large increase in demand in this period of crisis.
If you need to get around a moment of crisis, it is essential that your finances are organized. Keeping 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 government measures announced, as they can be valid for your business and help maintain income.
Get in touch with TATICCA – ALLINIAL GLOBAL, which provides integrated auditing, accounting, tax, corporate finance, financial advisory, risk advisory, technology, business consulting and training. For more information, access www.taticca.com.br or e-mail taticca@taticca.com.br. Our company has professionals with extensive experience in the market and has certified methodologies for carrying out activities.