For example, in case your payables (your debts) are due before your receivables (money from a sale you haven’t even gathered yet) coming in, you are bound to experience cash flow issues. This, in turn, means that you won’t be able to pay your bills on time, which can further result in more significant problems, such as creating payroll in a timely manner and getting questioned for creditworthiness. 

If you are looking to enhance your cash flow, consider executing some of the following steps.

1. Don’t Buy, Lease Instead

Since leasing real estate, equipment, and supplies typically turns out to be costlier than purchasing, doing so might seem counterintuitive to someone who is only concentrating on the bottom line or the total income after expenses are paid off. However, until and unless your business is filled with cash, you will have to maintain a healthy cash stream for your routine operations.

Through leasing, you pay in little increments, which assists in enhancing cash flow. An additional bonus is that lease payments are a business expense and thus could be written off on your taxes.

2. Provide Valuable Discounts for Early Payment

People simply love incentives, and if you provide your clients with a discount, given that they pay their bills early, you are developing a win/win situation that is beneficial for everyone. Receiving the cash early greatly assists your cash flow. 

3. Conduct Credit Checks of Consumers

If a consumer is reluctant to pay in cash, make sure you perform a credit check, particularly before signing them. If the customer possesses relatively poor/low credit, it is fair to assume that you will be experiencing delays in receiving payments.

As desperately as you may want to make the sale, late payments will significantly hamper your business’s cash flow. If you decide to go for a sale in spite of any doubtful credit, make sure to set it up with a high-interest rate. 

4. Make a Buying Co-operative

Think power in numbers, and try to locate other like-minded businesses interested in sharing their money to bargain for lower prices with the suppliers. They typically offer generous discounts for giant enterprises who buy in large quantities.

5. Enhance Your Inventory

Conduct an inventory check. Form an extensive list of goods you purchase that are not selling at a good rate as compared to your remaining products. These certain goods possess the ability to tie up plenty of money and could severely damage your cash flow.

Rather than purchasing more of what doesn’t often sell, discard it—doesn’t matter if you have to put it on sale. It is difficult to lose products that you are obsessed with, anticipating that their demand will magically go up one day, but that never happens. So, don’t be emotional; instead, be objective. 

6. Send Out Invoices Instantly

You will notice receivables coming in at a rapid pace this way. Ensure you completely comprehend the fundamentals of how to generate a good invoice. Keep in mind that your invoices should have the terms clearly stated and must be easy to read. Put the due date, in bold, in more than one place. Make sure to add clear-cut guidance related to the accepted payment types. In case your business charges a late payment penalty, remember to include that information too.

7. Utilize Electronic Payments

If you are paying electronically, you will be able to have more time than usual for your payments too. For instance, you can wait until the morning of the day a bill is due to go ahead with payment. This entire process of buying time enhances the cash flow. You could also make use of a business credit card as some provide a grace period of around twenty-one days, which could help a great deal in boosting your cash flow. 

There is a possibility that you may even get a fair amount of cashback; however, don’t get yourself in too much debt. 

8. Pay Less to the Suppliers

If you manage to keep regular, friendly communication with the suppliers, you would possess a decent chance of landing good terms. Provide suppliers with an option of early payments only if they’re ready to give you a generous discount. Excelling in negotiating a good deal is a crucial part of conducting business and could assist you in convincing your suppliers to present you with a much more profitable deal. 

9. Utilize High-Interest Savings Accounts

This will offer you liquidity while simultaneously boosting your cash position. The most beneficial high-yield savings accounts provide interest rates that can be twenty-five times higher than the national average, which means that you will be earning more on the cash you’ve put aside.

10. Boost Pricing

Boosting your prices is a concept that tends to scare off various business owners. And the reason for that is, they are afraid that it will result in decreased sales. No matter what you, as an owner, think, it is completely fine to play a little with the prices in order to figure out the perfect number. There is absolutely no way you can know how much high a consumer is willing to go if you’re not ready to take a chance.

Conclusion

Healthy cash flow is the result of operations that are run smoothly and efficiently. While executing a few or all of the above-mentioned strategies should assist you in boosting your business’s cash flow, you should also ensure that you are making the correct choices about your new consumer acquisition, services or product development, customer service, and marketing. That is why it is crucial to review and upgrade your business plan from time to time to make sure you foresee challenges and trends way before they hamper your profitability.

The post 10 Steps to a Healthier Cash-Flow for Your Small Business appeared first on Lebit Finance.

In today’s blog, we’ll go through how SMART goals work and why your business should consider them.

What are SMART goals, and why are they important?

SMART is an acronym that stands for Specific, Measurable, Achievable, Relevant, and Time-bound. Based on these parameters, goal-setting becomes much more efficient. SMART financial goals give you a clear picture of what you want to achieve, how realistic it is, whether it aligns with your broader business objectives, and how long it might take. 

Let’s examine what each of these elements means individually

Specific

To make your financial goals more specific, you must think about the who, what, where, when, and why. The devil is in the details when it comes to setting goals. If you don’t sufficiently examine your goals, you may encounter unexpected problems, sending you back to square one. To avoid the pitfalls of planning, consider the following questions:

Who has involved in financing this project? Who do I reach out to for additional funding? 

Where should I start this project? Where will it end?

What am I trying to achieve? What resources do I have at my disposal?

When can I start seeing results? When do I need this done by?

Why am I trying to achieve this? Why is this goal important?

After working out the specifics, you’ll have a clear idea of your goal. For example, “I want more revenue” is an unspecific goal. A more specific example would be “I want to increase my sales revenue by 20% in the coming quarter.” To take it one step further, you can ask yourself, “How?” and then make it more concrete: “I want to increase my sales revenue by 20% in the coming quarter by securing an equipment financing loan and upgrading the plant machinery.”

Measurable

A goal without a measurable outcome is like a sports competition without a way of keeping score. In the business world, numbers are essential. Having a quantifiable element to your financial goals will help you gauge your progress re how you are doing, what needs improvement, and what you have accomplished. So how can you measure your goals?

Metrics and analytics are an efficient financial management tool and an excellent way to measure success.  You can chart your organization’s performance through easy-to-read infographics using key metrics such as liquidity, profitability, and revenue growth. Once you know how teams are performing, you can reward high-performers, intervene in low-performing teams, and address problems seamlessly.

To further break down performance, you can set monthly Objectives and Key Results (OKRs) for your teams. Four to five measurable key results should follow each objective. Measure each Key Result on a scale of 0-100. Depending upon the outcomes, you can adjust your short-term targets to suit your long-term goals better. This will help you improve your bottom line without over-burdening your employees.

Keep in mind that communication is vital when striving to achieve your goals!

Achievable

Before you confirm a target, make sure that it’s achievable. The reason for setting SMART goals is to avoid the disappointment of failing to achieve your business objectives. 

This does not mean setting easy targets, as you need to challenge your teams to achieve organizational growth. However, there needs to be a balance, which is why achievability is a crucial element of SMART goals.

Achieving this balance can be tricky. You’ll need to understand your teams’ existing skills and capabilities as well as their growth potential. Utilize business analytics and accounts to conduct in-depth research, or hire a professional for expert help. Once you have the findings, you can set goals that are both formidable and attainable. Building on the previous example, a 20% growth in quarterly revenue is a realistic target; however, if you set a goal of 80% growth, you will likely demoralize your employees before they even set out to achieve it.

Relevant

Creating a business is like embarking on a journey. If you don’t want to get lost, you should regularly check your compass to make sure you’re moving in the direction you want.

Making sure your goals are relevant to the overarching organizational objectives is another important aspect of SMART goals. If your plans are relevant, you’ll continue to progress toward your intended destination. However, if your plans are irrelevant, you run the risk of losing your bearings, resulting in inefficiency and revenue loss.  For example, if your business has a short-term liquidity problem because of a low receivables turnover, a relevant plan would be to apply for invoice factoring.

Time-Bound

Stephen R. Covey famously said, “The key is not in spending time, but in investing it.” There’s only so much time a business can invest in its many aims and objectives. For this reason, it’s immensely vital to position each goal by a relatively fixed time-frame. This will help you gauge how much the company can achieve each quarter and prioritize some goals over others. For example, if you have an unfinished project nearing its projected deadline, you can focus your resources to complete it on time. If you require additional finances and have exhausted conventional options, you can apply for alternatives such as Merchant Cash Advances or a Business Line of Credit.

Conclusion

Ultimately, SMART financial goals distinguish average businesses from outstanding ones. Having a clear and realistic picture of your targets is essential to organizational growth. Additionally, when you know what your targets are, you can tap into the relevant resources to meet your financial requirements.

Targets must be measurable and time-bound to quickly measure and track progress, and make necessary adjustments. Ensure that your goals are relevant to your business objectives and realities so that you can prevent mismanagement and organizational inefficiency.

The post SMART Financial Goals for Growing Businesses appeared first on Lebit Finance.

Entrepreneurs from around the world continue to add to America’s growing economy. While it is true that many entrepreneurs become successful, there are specific steps involved in getting there.

The American dream is available to all, but it’s just some people who believe in it enough to pursue higher goals. If you have the right determination and belief, the sky is the limit. Below are some points that can help streamline the process for you and make the American Dream of entrepreneurship achievable for you:

To outgrow your competitors and become a successful entrepreneur, you need to have some fundamentals.

An insatiable desire for business success

Successful entrepreneurs share an innate need to make it big. When you happen to find yourself in a country like America, where you know your efforts will produce the best of results, you are more likely to put in that extra effort. Immigrants, on the other hand, work harder and are more equipped to persevere. While cultural boundaries are always there, the drive to success surpasses all other differences. Entrepreneurs who want to become a success story need to commit to their idea and the company’s mission fully. Once you develop an idea, you should sacrifice all other commitments to bring your vision to reality wholeheartedly.

Take a unique perspective in solving a problem

If you are in it for the long haul, you must launch something you genuinely believe in and are driven by your passion. So if you are into clothing and details matter to you the most, you can combine your passion and business acumen to introduce something unique to the world. Scan the world around you; you will find a problem that you can solve.

The importance of your support system

There is no way you can succeed without the support of your loved ones. To get your business off the ground and even beyond that, there is a need for motivational and emotional support that you would require throughout your journey. For most immigrants, their employees and first customers are usually their family members. If you are unable to hire full-time employees initially, your support group can help you take care of some of the tasks.

While the family is not the only support you can leverage, connecting with the community and the other business leaders can also open-up opportunities.

Getting the right funding for your business

It is essential that initially, when you start, you start small and make your way up. Even if it’s a startup, there is some funding that you would require. There is a possibility that you might not receive funding initially, but once you have established your credibility, the chances your loan is going to be approved go up.

You could also connect with us at Lebit Finance directly. We’re a group specializing in financially facilitating small business owners through our paycheck protection programs which are SBA approved and here to support you.  

Using the right marketing mix for your product 

Not only does your product have to be unique and solve a problem, but it also has to be marketed to the people, using the right messaging to get the right response. Even though the digital landscape has opened up many opportunities, marketing has become more complex and targeting even more difficult. Having someone experienced to guide you through the process while helping you execute would be the right call.

While a lot of things have changed during COVID-19, the market has also drastically altered. From big corporations cutting down to more startups making it to the limelight; here is why this is an excellent time to start your business:

There are plenty of opportunities in the market

While it is true that due to COVID-19, most businesses had to face severe losses, and many had to shut down their operations permanently, it has opened many other doors. The rate at which transformation occurs, creating new opportunities to embrace the future, is the best way to move forward. The pandemic has brought about many changes that have created new needs in the market. 

From the need for reusable masks to improved video conferencing options and at-home fitness solutions, COVID-19 has created new problems that entrepreneurs can address and become successful.

Many of the world’s biggest companies were started during times of economic crisis, such as General Motors, Microsoft, and Airbnb. You can take this opportunity to combat a problem that will generate revenue and become a success overnight.  Given how COVID-19 allows you to work from home, you save plenty of time and, therefore, can invest in taking your business to new heights.

Many startups are responsible for job creation, and while things don’t seem so good for the economy, your idea might help a lot of people get jobs.

The post Live your American Dream: Establishing a Successful Business appeared first on Lebit Finance.

Student debt cancellation, fair loan structures, and improved PPP funding. The main question is: Can he make it happen?

Just four days after the polls were finally closed, on a sunny Saturday morning, the majority of the big networks stated that Joe Biden had received enough votes to defeat Donald Trump and win the all-important presidential election of 2020. As of now, we wait for January to ask the newly elected President Biden what he can do for small business owners that have been severely damaged throughout the covid-19 crisis. 

New Paycheck Protection Program Regulations for Small Businesses 

What is it?

When Congress established the 1^st round of Paycheck Protection Program (PPP) funding for businesses under fifty employees in the midst of Covid-19, Biden called upon the Trump-led administration to allocate the majority of the budget to companies with fifty employees or less; therefore, it is a fair assumption that this is exactly what he would call for, to every stimulate plans implemented during his tenure. 

The existing Paycheck Protection Program guidelines were comparatively more eased and allowed businesses to apply for financial aid if they had five hundred workers or less per geographical area. This is exactly how national chains managed to obtain financial assistance in spite of employing more than five thousand people. 

How it can Help?

Take a walk around your neighborhood and ask any small business owner who has been living in misery ever since covid-19 struck. A lot of businesses have to cut back their expenses, while many had to completely shut down their operations. 

If you ask entrepreneurs what they would like the most right now; they will state how difficult things have been and how desperately they require a generous relief package just to stay open and pay their workers. A general takeaway from 1^st round of PPP’s funds’ distributions was that enormous businesses stepped in first and ate a massive chunk of the pie.

Is it Possible? 

The financial assistance package comes thanks to Congress. On 1^st October, almost all of the Democratic House voted in favor of approving a whopping $2.2 trillion package with a massive amount of that budget allocated for the upcoming rounds of PPP funds distributions. 

However, the Republican-led Senate hasn’t yet decided on any sort of stimulus package, and in case they somehow manage to keep control, the newly elected President Joe Biden can only encourage or advise them to make drastic changes. But, provided the enormous rage seen during the recent situations, any amendments to the given guidelines here feel probable even in a divided party situation.

Distribution of PPP Funds via Qualification

What is it? 

Rather than setting a certain budget limit, President-elect Joe Biden posed a profitable idea of making the existing guidelines more particular, so that every business falling under those guidelines will qualify and receive the massive financial relief package. This is something that will help ease things up. 

How it can Help

During the initial days of the PPP, the majority of the small business owners were left in the cold due to the first-come, first-serve policy. This also meant that its $350 billion budget ran out very quickly. This means that the more significant and comparatively more funded businesses that have strong relationships with banks and in-house legal departments ate up that financial aid money at a rapid rate making it difficult for small business owners who not resort but to fight against each other as they look to gain the same decreasing resources. 

As stated in Joe Biden’s small business’ plan, the newly elected President believes that a mishap resulted in small businesses with less than twenty workers obtaining only twenty percent of the money, despite the fact that they make up 1/3 of the payroll. He further believed that it also excessively hampered small businesses owned and operated by people of color and women.

Is it Possible?

In case Democrats manage to win the two senate seats in the runoff election of Georgia, it would provide them with major control of the Senate.

Revamping the structure of Loan

What is it? 

The perplexity of how owners with huge businesses were permitted to utilize the PPP funds funding created havoc among the majority of the small business owners. The latter couldn’t always receive explicit instruction on what the money could really do other than paying workers’ salaries and feared defaulting on their loans. The newly elected President,  Joe Biden, has stated that we must enable the loans to be more feasible so that they could also cover fixed costs such as utilities and rent, apart from just payroll. 

How it can help 

He stated in his own proposal, “There is no use of paying for a payroll if a small business cannot keep its lights on.”

Is it possible? 

The bewilderment over how such small businesses were permitted to spend their PPP funds was observed by owners belonging to distinct political parties. Making extensive and concise guidelines and enabling them to be more fruitful in keeping shops open seems to be something that could easily go beyond party lines no matter who controls the Senate. We are yet to see the results, but from the looks of it, things look a lot more positive. 

Student Debt Relief

What is it?

Forgo student debt of $50,000/eligible person that falls under a specific qualifying category. 

How it can help 

On 2^nd November, Chuck Schumer, Senate minority later, said in an interview that President Biden’s initial hundred days would harken back to FDR’s with bold action. Those who support the idea believe that it will encourage the future formation of small businesses to no longer be burdened with education debt and will free up spending money for customers to be able to spend without restriction in the midst of this unstable economic time. Furthermore, it will greatly help the current students in managing their expenses since a large chunk of their salary goes into paying student debt. 

Is it possible?  

Chuck Schumer has said that when Biden finally becomes the President of the United States of America, he might present such a proposal through executive order.

Are you interested in knowing about PPP and other financial assistance options? Head over to Lebit Finance and have a look at plenty of choices and select one that suits you the best! Our representatives are always ready to help and go out of the way to resolve your queries. 

The post Expected PPP Guidelines Under the Biden Administration appeared first on Lebit Finance.

All of these things have happened due to COVID-19.

In the form of PPP (Paycheck Protection Program), small business owners have been given some financial relief. This program is specifically designed to assist the business in keeping their workers employed and staying open. 

All those business owners who qualify for a loan via this program, won’t have to pay borrowed money if they adhere to some specific rules. This could prove to be a significant relief for every small business owner who is having difficulty producing income during the global pandemic.

Small Business Coronavirus Relief

In late March, the federal government passed the CARES Act – better known as Coronavirus Aid, Relief and Economic Security Act – to assist individuals and businesses suffering in the midst of this novel virus.

As part of this relief package, the federal government reserved $349 billion for small business loans made through the SBA, to help business owners pay their workers and cover some particular expenses.

How fast will PPP funds run out?

The Trump-led administration announced an enormous amount of small business loans adding up to around $175 billion, would be made during the 2nd round of PPP.

The real question here is, how long will those funds last? The initial round of the program ran out of money in a wink, and the numbers predict that the next round of funding will run out of money as well.

The officials of the government have stated that they are considering refunding the program again to assist the business owner in keeping workers employed. But small business owners who require this financial assistance must apply as quickly as they can to avoid all the unnecessary hassle and delays.

When can I apply for loans through the PPP?

Now, business owners can apply for PPP. This can be done by working with any current SBA 7(a) lender, which involves credit unions and federally insured banks. Other than that, small business owners can also work with those lenders who have been approved by the SBA to make PPP loans.

What are businesses eligible for PPP loans?

Every single business, five hundred or fewer employees might be eligible for a PPP loan. However, businesses that do not meet the above criteria can also apply for the loan if they fulfill the SBA’s alternate-size or industry-based standard.

How does loan forgiveness of PPP work?

PPP loans attract small business owners because some or all of the loan might be forgiven by the SBA based on how the owners make use of the funds.

According to the program, the SBA will forgive all of the loan amounts that businesses will utilize to cover their first eight weeks of mortgage interest, utilities, rent, and payroll costs. That eight-week clock will start ticking as soon as the chosen owners receive the funding.

An important thing to note here is that the business owners should only utilize the granted loan as the SBA intended. The sole objective of providing loans is to ensure that people are employed; therefore, the SBA demands chosen owners to spend most of their loan money on paying employees.

At least seventy-five percent of the PPP loan that is forgiven should’ve been utilized only for payroll. Businesses are strictly instructed to adhere to this policy. However, if businesses fail to comply with the rule, as mentioned above, they will have less of their PPP loan forgiven.

Business owners should keep in mind that a significant part of the provided loan can only be spent to rehire or retain workers.

What’s the deadline to repay the loan?

All the business owners will have to start repaying their loan six or twelve months after receiving it. If the entire amount is spent on utilities, rent, mortgage interest, or payroll, your entire loan might be forgiven.

How much money can be borrowed via the PPL program?

It all depends on the individual business. As stated by the SBA, a business can borrow up to 2 and a half times its average monthly payroll costs. A single business can’t possibly borrow more than $10 million; it doesn’t matter how much you pay/ month for payroll.

If your business’s average monthly payroll expenses are up to $200,000, you qualify for a PPP loan of around $500,000.

Is it possible to apply for more than one PPP loan?

Businesses can only apply for PPP loans only once. But if you run more than one business, you can obtain PPP loans for your businesses.

There are several other assistances available as well if your business doesn’t qualify for a PPP loan. Lebit Finance is geared towards financially facilitating small business owners through paycheck protection programs which are SBA approved.  

In the end, spend ample time on crafting a solid business plan. A robust business plan can assist you in preparing for uncertainty in the future.

The post A Comprehensive Guide to PPP (Paycheck Protection Program) appeared first on Lebit Finance.

While the concerns are entirely justified and unprecedented, small companies can still safeguard their business while also protecting the employees, vendors and customers.

In this blog, I will highlight the impact of the virus on small businesses, ways to mitigate losses, and steps to protect yourself from going bankrupt. 

Remember that these suggestions aren’t comprehensive since we still don’t know enough about how the situation will play out and which strategies may backfire. However, we hope to provide a good starting point for business owners who are overwhelmed and uncertain about how to proceed.

Regardless of your industry and business strategy, your number one priority should be staying safe and taking care of your mental and physical health.

The Impact of COVID-19 on SME’s

In addition to the impact on public health, COVID-19 has caused a significant economic shock. More than 400,000 businesses shut down since March, and the number is ever increasing. Many small businesses are financially frail and ill-equipped to endure a prolonged period of considerably reduced revenues. Further, large-scale business failures have destroyed jobs, capital and continue to hamstring the recovery. The existing primary source of funding, the Paycheck Protection Program, has had varied success and is not well suited to what now seems to be a prolonged contraction.

Eighty-eight percent of small business owners in the US have already depleted their Paycheck Protection Program (PPP) loan, states a new report from Babson’s Goldman Sachs 10,000 Small Businesses program. This Small Business Association (SBA) loan was explicitly designed to aid businesses in keeping their workforce employed during the pandemic. However, with no end to the spread of COVID-19 in sight, a growing number of local employment providers are running out of funds.

More than 32% of PPP loan recipients have already laid-off workers or cut their wages. Another 36% say they will be compelled to do the same if Congress does not act soon, and 30% will have drained their cash reserve by the end of 2020.

These figures are even grimmer when you narrow in on the effects of COVID-19 on Black-owned businesses. Forty-three percent of Black small business owners report that their businesses’ cash reserves will be exhausted by year’s end, and nearly 40% who received PPP loans have had to lay off employees or cut wages.

Running a Business Amidst COVID-19

Here are some straightforward, short-term steps you can take immediately to tackle some of the most pressing small business concerns caused by the pandemic.

Set up safety guidelines

Again, safety is the number one priority. Put in extra efforts to implement CDC-recommended precautions in your business as soon as possible if you haven’t already. Among the most important recommendations are:

1. Actively encourage employees, particularly those who are sick, to stay at home. Enforce systems that allow them to work remotely if possible.
2. Emphasize the significance of coughing and sneezing etiquette as well as hand hygiene within your business.
3. Hire a team to perform regular and thorough cleaning and vacuuming of the workspace.

Adapt and utilize digital tools to provide uninterrupted service

As people across the globe are being requested — or required — to stay home as much as possible, businesses will most certainly experience a dip in physical customers. One method that might counteract the drop in revenue is to shift to the online world.

If you’re selling products and haven’t already started selling online, jump right in by setting up a basic online store. Many store owners are also offering pick-up services, where customers can phone or email in advance with the items they are interested in and pick up a wrapped/sealed order without even entering the store. Restaurants have started contactless food delivery services, allowing the business to stay open and the customer to continue enjoying their food without risking their health or those around them.

Depending on your industry, there are several possible ways you can continue to offer services and not lose customers. For instance, my local fitness center provides personal fitness training via video conference, and many yoga studios are following suit.

Convey the right message to customers and potential customers

Once you’ve successfully implemented the CDC recommendations for operating your business safely, put your customers’ minds at ease by addressing possible concerns and relaying your approach. 

Reassure them of how you’re taking this situation seriously and share what policies and processes you’ve adopted to keep them protected as they conduct business with you.

Include any critical updates you may have about business hours or product availability on all social media platforms and the website to avoid miscommunication.

If you need additional guidance with communications regarding Covid-19, refer to the US Chamber of Commerce’s coronavirus response toolkit.

Once you have written out your most important messages and updates, here’s how to share them:

1. Update your website homepage
2. Update all of your business listings (most notably, Google My Business)
3. Send emails to your subscribers regularly.
4. Post updates through your social media platforms.
5. Lastly, if you have a physical location, put up signage in your storefront with the same information on taking precautions.

Increase Cash On Hand

In a recent survey conducted by asset management firm Principal Financial Group, 87 percent of small businesses characterized their financial health as stable or growing compared to 93 percent reported by larger businesses. 

Having cash on hand was cited as a key concern for business owners who limited cash available —for four months on average— to run their operations as of June. Financial experts recommend having liquid assets (money in bank accounts and very liquid investments) equal to three to eight months of operating expenses.

Many small businesses have started searching for new funding sources to manage the pandemic’s short-term effects. According to the survey, just over 11% of companies have sought out SBA Express Loans to improve their liquidity. If you’re worried about your business finances, get in touch with the professionals at Lebit Finance for a free consultation as our dedicated team guides you through the multiple options you can choose from. With Lebit Finance, small business financing has never been more accessible! 

Conclusion

Businesses are adopting new practices, policies, and approaches to keep their operations active. These strategies include increased sanitation practices, allowing more employees to work remotely, effective communication with customers and employees, and increasing cash on hand. 

Technology and e-commerce are also cited as essential to improving small businesses in the future. A vital adaptation is the increased focus on the physical and mental well-being of employees and owners. Despite the financial crunch, most companies are not looking to cut back on employee benefits. Some are even reporting increasing offerings in employee mental health and well-being programs in addition to healthcare. 

Because at the end of the day, there is nothing more important than your overall health and well-being.

The post The Impact of COVID-19 On Business Growth: How Can SMEs Adapt? appeared first on Lebit Finance.

With that being said, it’s certainly possible to pursue entrepreneurship in these uncertain times. Many business ideas may even have a greater potential to thrive during such a time of crisis. Here are a few hacks to help you successfully start a business during a pandemic.

Understand the Consumer Demand

The product market is currently going through rapid changes as the virus continues to impact consumer behaviors. Before investing in any business during the pandemic, consider whether your product suits people’s current lifestyle. The pandemic has affected the economy, while millions in the workforce have gone unemployed. This economic uncertainty means that consumers aren’t as willing to spend as they were before. If you want to start a new business, understand the market demand, and learn about which products consumers are still willing to buy.

A pandemic doesn’t necessarily mean that people aren’t going to spend on products and services beyond the survival necessities. Indulgence is necessary to maintain some semblance of normality. Let’s take the pet adoption business; pet adoptions have soared up to 700% since the pandemic started. As social distancing becomes the new normal, everyone around the globe is exploring new ways to cope with the stress of lockdown, and pets are the ideal solution. Pumpkin Pet Insurance was one of the first companies to realize this potential and started their business in April.

Hundreds of other business ideas are similarly expected to emerge out of the pandemic. As an entrepreneur, you need to survey the market and observe consumer behavior before investing in a venture. Closely monitor the demand, consumer spending habits, and identify potential needs and wants to launch a successful business.  

Invest in Digital Marketing

We were already living in the digital age, but the pandemic has hastened the digital revolution. Worldwide lockdowns forced companies to develop robust digital marketing strategies to stand out from the competition. Online platforms have become the primary source of communication and exchange of ideas.  

Your digital marketing strategy and online interactions will set the tone for your brand’s success. As online advertising and customer referrals become the primary drivers of traffic for a business, you can either learn effective digital marketing or lose yourself in the clutter.

Develop a strong marketing strategy and effectively engage your social media platforms to connect with people and build trust. Ask your friends and family to support your venture and give feedback on products and services.

Establish a Seamless Delivery System

For a new business directly selling products to customers, this one should be obvious! It is absolutely necessary to establish a flawless system for product delivery. You can either create your own delivery system and hire riders or collaborate with shipping companies to avoid extra hassle.

The inability to deliver products on time can cost you customer’s trust and the company’s reputation.

Keep Your Business Plan Flexible

During economic uncertainty, the ideal scenario is to have a long-term, recession-proof business plan. A strong business plan will allow you to deal with challenging scenarios and provide room to adapt ad evolve. With a flexible plan, you can improvise according to the given situation and still come out at the top.

Conclusion

The marketplace is insane at the moment. It may not yet look like things will get better, but they will. But till that happens, entrepreneurs need to find ways to innovate and adjust. The key is to find smart solutions and invest in industries unaffected or more likely to bounce back post-pandemic. And remember to be patient because success doesn’t happen overnight.

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