Preparing Your Business for COVID-19 and the Future
We’ve all felt the pressure of the Covid-19 pandemic creeping into our businesses by now. I can see that pressure creating a bit of panic in myself as well as in a good deal of my clients. The unfortunate truth is that some of this panic is not due to the disease closing doors or changing business models but from a general lack of preparation and understanding of the financial side of business.
Many people begin to work for themselves because they see a need for their product or services in the market, and they love to do that work. Some of these people thrive. They grow and prosper, taking on new employees or locations. However, this prosperity alone does not guarantee that a business is set up in a way that can provide a buffer against a downturn in business or even a mandatory shut down like we are seeing now.
How is Your Business Doing?
First, I would encourage you to take a moment to look at HOW you are doing business and see if there are any modern solutions that could keep your “doors” open. This might even show you another way to do business going forward which can open you up to clients, employees, and markets that you previously didn’t know you could reach!
Run The Numbers.
The second thing I would encourage you to do is run the numbers for your business. How many things do you need each employee to sell or serve just to pay their salary? How many total customers do you average in a month, how much profit to they bring in? Even down to what does it take to keep the lights on, and how much does each sale or each customer contribute to that number.
Most people didn’t start working for yourself to know these things. We get it. Our business is built to do this, and we love it! But we also know that when it comes to loving financial statements, we are in the minority. Many people, not just in business, don’t take the time to look at their spending or their schedules because as people we don’t like to see how much we “waste” or spend on things we know we don’t value. This is where a major portion of our business worries are currently coming from.
Look At Your Financial Statements.
If you haven’t taken a good look at your financial statements when you get them monthly, or quarterly, and you haven’t used them to really know your business then now is the time. If you need help with them, please reach out. We would hate to see any of our clients, or anyone in general close their doors for good when we could have done something to help. We are a small business that was birthed for the sole purpose of helping others deal with this sometimes-burdensome side of doing what you love.
If you have any concerns about where you are financially, how many employees you can support should your customer base half, or just need help understanding your expense to income ratio and its implications. Please call us at (307) 316-2604 or email us at Heidi@hlabookkeeping.com
We are open Monday to Friday 8-5 MST. Please, take the necessary health and safety precautions but also, please take the steps needed to keep your business safe so you can keep doing what you love!