- Be flexible
Make a risk analysis and think ahead: what are the possible scenarios for your company in the coming months? Is your supplier based in Italy and can no longer deliver to you? Look for options of ordering from a supplier in another country that is not yet in lockdown. Can you no longer offer your products or services in a specific region? Perhaps this is still possible in another place. Or can you no longer sell your product in the store as usual? Deliver to the door or move online. Be creative!
- Make agreements with customers and suppliers
By making clear agreements in advance with your customers and suppliers about the invoicing for a specific assignment, you can reduce payment terms. This means you have working capital faster and your liquidity improves. For example, give discounts to customers that are able to make quick payments, send out invoices in parts to customers on long-term collaborations to get paid throughout the project, or ask for advanced payments for big assignments.
- Find alternative ways to keep your business open
The best way to keep your head above the water as a business is obviously to keep a stream of income going. If restrictions are already in place in your area, your business could once again be forced to shut its doors so it’s important to be reactive. Look to move to selling products and services online, setting up a streaming service, or provide home delivery where possible to not only keep your customers happy and involved but your income going.