Money Management Tips for Businesses During Lockdown
Let’s be honest: money management hasn’t been easy in 2020. With the two lockdowns and the ever changing tier system, most businesses haven’t known whether they’re coming or going. The result has been plummeting incomes and cash flow problems, with some businesses struggling to survive.
Sound like your business? We get it - and we’re here to help (and hopefully get rid of some of that stress). Stop wondering what you can do to make the most of your money so your business can survive and thrive in the new year. Instead, read on for our innovative money management tips to help you stay on top of your finances and make some extra cash.
Who knows? That could be you by the end of this blog post.
Have a More Lucrative Lockdown with These Money Management Tips
1) Rent out your office and parking space
If you have an office that’s sitting empty while your team works from home, why not rent out your space to make some extra cash? Here at Stashbee, it’s completely free to list your office. Just upload some photos, give us a few key details, and individuals or businesses looking for storage will be able to find and book your space. Plus, our COVID safety guidelines for hosts mean you can make that extra money safely, even during lockdown.
Similarly, if your office has allocated parking that isn’t being used, you can list that too. Just provide your address along with the dimensions and some photographs of the parking space. You can send potential renters a video for contact-free viewings, and with our secure, cashless system, you know you’ll always get paid.
Sound easy? That’s because it is!
2) Slash your overheads
When sales are down, you need to look at ways to reduce your spending. Cutting back on any nonessential spending such as travel and in-person meetings (why are you doing that during a pandemic anyway?!), introducing a hiring freeze, and reducing your reliance on outsourced teams are all quick ways to reduce your costs.
Even if you are tied into a contract, there may still be room to negotiate. For example, you could ask to make reduced payments over a longer period of time or pay in monthly instalments rather than a single lump sum.
Wait, no, we said slash your overheads not your enemies’ tires!
3) Streamline your services
It’s not just Jeff Bezos who has managed to keep his business going during the pandemic. If you’ve managed to stay afloat during the restrictions, then hats off to you. Clearly, even in this strange new world, there’s still demand for the products and services you offer.
However, even if you’re still making sales, concentrating on just a few core products and services is a simple way to reduce man hours and save you money. If that means you have to temporarily remove less popular product lines and even refuse orders, that could be the way to go.
4) Consider a Bounce Back loan
A what? The Bounce Back Loan Scheme is part of the government’s coronavirus support package for businesses. If you’re struggling for cash, it could give you quick access to between £2,000 and £50,000 (can you say cha ching?). However, you must apply by 31 January 2021 so now’s the time to get cracking.
The good thing about the Bounce Back Loan is that it’s 100% guaranteed by the government. That means there are no personal guarantees to sign. The interest charges are also very low. However, like any loan, it’s not free money, so think carefully before you apply. (We hope that didn’t sound too much like Mum and Dad nagging you there...)
We hope this isn’t what receiving a Bounce Back Loan is like.
5) Keep an eye on your personal finances
If you’re a sole trader or in a partnership, you’ll know that your personal and business finances are one and the same. Therefore, you’d be wise to take on board a few personal money management tips, too.
Restricting your credit card use, cancelling any nonessential memberships (when was the last time any of us went to the gym?), and focussing on paying off any expensive debts will help your personal funds go further. If you do have a rainy day savings fund, keep it for absolute essentials such as rent and mortgage payments. Not as exciting as a yacht, we know - but it really helps.
6) Make the most of free marketing streams
When times are hard, one of the easiest ways to save money is to reduce your marketing spend. The internet is full of marketing opportunities that won’t cost you a thing. Love it or loathe it, social media is a great way to reach your customers for free. Even if you haven’t used social media to market your business before, now is a great time to learn new skills that will serve you well in the long term.
You can use social media to tell your customers about special offers and let them know the measures you are taking to make your business COVID-safe. You could even send them a video of a man walking up the Strand with a ferret on a lead - not sure we recommend doing that, but it’s definitely something you could do.
It’s also well worth spending an hour or so creating a listing on Google My Business. That will help your business appear in the Google search engine results for local searches.
7) Stay motivated and work hard
Being forced to close your business or see your income plummet overnight can be soul destroying, particularly when you’ve worked so hard to build it up. But do not give up. If you work as hard as you can, then even if your business does fail, at least you won’t have any regrets. (Although now that you have these money management tips, failure should be seeming less and less likely.)
Once you’ve got over the initial shock of the restrictions, see this as an opportunity to do all the things that you’ve wanted to do to improve your business that you’ve never had the time for. Once you start ticking a few things off your to-do list, your motivation will soar. You’ll then be left with a healthier and more competitive business when things finally get back to normal.
8) Make your workspace work for you
We hope our money management tips help your business survive and thrive long after the current restrictions are lifted. While you’re waiting for things to get back to normal, why not drop us a line? We’d love to tell you more about how we can help you make cash from your unused space.
22nd Dec 2020