How to Better Manage Your Small Business Revenue During a Crisis
In these uncertain times, small business owners are asking what they can do to better manage their incoming cash. Here’s how to better manage your small business revenue.
Strategies to maximize your small business revenue
Ensuring that you’re getting the maximum amount of revenue possible may mean looking into some creative solutions, especially when the income you may have been relying on in pre-pandemic times may have reduced or stopped due to changes in consumer behaviour and forced business closures. The strategies you use below will of course depend on the type of business you run.
Look into using electronic payments
Ease of payment is one important aspect of your business that will keep customers coming back to you. If you haven’t already, setting up a way for your customers to send you money digitally will not only make it simpler for you to receive payments, but it will also allow customers to pay you without having to leave their homes or risk their health. Stripe, Apple Pay, and other online platforms are not only convenient, but they also ensure that customer payments will go straight to your bank account. Small fees may apply, but your payments will come in quickly when you need them the most.
Offer discounts to those who pay promptly
If your small business needs money quickly, offering a small discount (1-2%) for prompt payment will entice customers to pay now rather than later. This will increase the chance that you’ll receive your revenue in a timely manner.
Begin collecting outstanding payments right away
Chances are, you have some customers who owe you money. Now is a good time to collect, and because the current pandemic crisis is likely affecting your customers as well as your business, they will appreciate any efforts you make to work with them. Payment plans may be a good start. Not only will this help you get ahead financially, it will help you stay mindful of your customers’ hardships and increase the chance that they will return to you after the crisis is over.
If you are still getting orders for your products or services, don’t hesitate on sending the invoice. Doing so upfront will only speed the time it takes for you to get paid and lets your customer know right away how much your products and services will cost. If you cannot send a full invoice right away, a partial invoice will be better than nothing, or you can even work out a payment plan depending on the services rendered.
Of course, invoicing immediately means that you will also need to deliver your product or service quickly.
When you invoice, use modern technology
Mail delivery and using staff to deliver any products may not be possible or safe during this crisis. Paying paper invoices, in the case of business to business invoicing, may take a long time if the staff are ill or staying at home. As many are working from home, electronic invoicing may be the way to go, and is an easy way to manage your small business’s revenue.
Reach out to your customers
This may be the most important way to manage your business’s revenue in the long run. If you have had to close your small business due to the current pandemic, don’t let your customers forget about you. Social media is a great tool for providing updates to your followers and getting them excited for when you do reopen. Online newsletters are also useful for this purpose. You can also use electronic media to let customers know if you’re still open for business.
If you are in need of an accounting partner with experience and you are ready to take your small business to a new level, contact us to learn more.