The global pandemic has disrupted most small businesses in some way. Some have had to close down completely, while others have had to adapt their operations to deal with shutdowns and changes in buyer behavior in order to survive.
The marketing industry has faced a number of challenges, but there have been some incredible creative marketing campaigns that have emerged during this time. As conditions begin to return to normal, there will be numerous lessons to take from the pandemic to ensure that businesses can survive future events.
For many businesses, this is the first time they have dealt with financial hardship of this magnitude, and it’s something all businesses will want to avoid happening again.
What are the key money lessons for small marketing businesses post-COVID? Here are three key strategies to consider for your own business.
Reduce Your Debt
In any period of business disruption, whether it’s a pandemic or just a cyclical slowdown, being over-leveraged creates serious though avoidable risks. Eliminating business debt should be your priority to prevent future problems with payment and credit if you’re faced with a dip in revenue.
While business loans are a necessity for many businesses, especially at the beginning, the sooner you can free your business from debt (or at least minimize it), the better.
Control Operating Costs
One thing many businesses have realized during the pandemic is how much they overspend. From office space to unnecessary business travel and expenses, the costs can easily add up.
Being able to budget effectively and reduce your running costs can help make your business leaner, meaning there is less overhead to worry about if your income takes a hit. Now is the time to ask some tough questions about the future of your business and how you can reduce your ongoing costs to make it more efficient.
Create a Reserve Fund
Building up a reserve fund is crucial to ensuring your business can survive difficult financial periods. Having savings set aside will make a big difference, and you might want to think about building up your reserve fund before investing in other areas of your business.
You can grow your savings even further by making investments. Cryptocurrency is growing in popularity, and it’s worth exploring what is Ethereum (ETH), a type of cryptocurrency, to see if it could make a worthwhile investment for your business. Investments shouldn’t be taken lightly, but they could provide your business with the added security you need at this time.
While most businesses have a continuity strategy, think about revisiting this in light of the pandemic. Having a plan for your company’s finances can help you navigate difficult periods, ensuring your business can stay afloat if you encounter problems.
While nobody could have predicted the impact the pandemic would have, you can feel safe in the knowledge that you’re better prepared for the future.