Making Good Financial Decisions for Your Business During Difficult Times
August 20, 2020 11:08 AM
This is an all-around tough time for all of us. Businesses find themselves trying to provide safe employment, while still serving their clients and customers effectively. More than ever, everything is unpredictable.
What can you do to help weather the storm for your business? Here are a few ideas:
Maintain Cash Flow
Now is the time find creative ways to maintain cash flow. Consider these action steps:
Creating new, value-added products and services. Many retail businesses are now providing phone and text-based personal shopping, delivery services, and other means of contact-less pickup of purchases. These things help customers feel safer in continuing to shop with you.
Stay the course with marketing. Use the mediums that work best for you, so you can spend less to generate sales.
Stay flexible to promote productivity. If your team is made up mostly of office workers or others who are able to work remotely, be conscious of their personal situations.
Don’t be afraid to use your savings. This is exactly the kind of emergency savings accounts were designed for. If you need some, use some. Whenever your business bounces back, even temporarily, allocate earnings toward savings again — and repeat, as necessary.
Maximize Interest Earnings
Interest rates are low, but look around for options that may suit you. Account features such as no minimum Balance, low initial deposit requirements, and free ATM services can all help you get as much as possible from your accounts.
Cut Back on Loan Interest
A small business loan can be advantageous right now, whether you need to cover short-term costs, new capital expenses, or even take this opportunity to expand.
Consider a business line of credit, to help you ride the waves of unpredictability. Having one ready to go will give you quick access to funding, as needed. And you only pay interest on the money you actually use.
Above all, remember that you’re not alone. If you’re struggling with a specific issue in your business right now, please don’t hesitate to ask for help. Horizon Bank advisors will be happy to discuss what’s happening, and help you find solutions that may not have even occurred to you yet. Call 888-873-2640 or find a local business advisor today.