A Pandemic – Now What?
Updated: Sep 2, 2020
For many small businesses, the scare of a pandemic alone has been enough to disrupt their financial position in the market. Add to that a global recession, and businesses across the globe find themselves faced with insolvency. This needn't be the case. In fact, now is the opportune time for businesses to get back to the basics. In this case, the basics are ensuring that business expenses are well controlled and don’t outpace income over the course of a month.
All too often, small businesses focus on the total funds available in their bank account rather than on the profitability of the company within any given month. The challenge with this line of thinking is that it perpetuates a business's focus on total cash reserves available to the business rather than on sound income and expense management principles.
Since small businesses have routinely been living under the malaise of the pandemic, it is now time to get back to the basics of good financial stewardship. This type of stewardship will assure the long-term viability and sustainability of small businesses in today's economy.