How to manage business expenses and debt collection in crisis mode.
Knowing how to manage your money during the COVID-19 crisis may seem like a daunting task. Practitioner Eli Michal, Vusani Ravele and Mariska Henning offer these top tips on how to reduce expenses and make money go further during these tough times.
Invoice on time with the correct details
It’s critical to get paid on time, so ensure that your admin is up to date to avoid a situation where you address an invoice to the wrong person or include incorrect dates or details. It’s also important to ensure that you have the right point of contact in the organisation you are invoicing.
Eli Michal, founder of Payabill
Adapt the way you sell
As a manufacturer, we had a lot of raw materials on hand when the lockdown started that needed to be used. We therefore had to secure sales ahead of time and launched a new product line that supported working from home. We’ve had to shift our sales tactics as well: Selling to people at their homes is something that every business needs to start doing. People won’t be coming to us in the same way going forward, and we’re adapting to that.
How does your business need to adapt?
Vusani Ravele, founder of Native Décor
Understand your numbers and have honest conversations
First, it’s important to understand the difference between profit and cashflow. Even if cash flow is great, if it’s not managed well the business can run into problems. Investigate payment holidays, chat to your bank and beware of the costs that comes with these. Have honest conversations with suppliers about the payment options available to aid cashflow.
Mariska Henning, chartered accountant, The Beancounter
Business Banking Invested in Every Moment
We understand that small businesses have different banking needs. B\\YOND supports your business with a consolidated platform that enables you to manage your money and keep your business working through these difficult times. Find out more: https://sasfin.com/bank/byond