How do you cushion your business against negative financial losses

[Nicklas22]

Make a budget
If you don’t know exactly how much money you have coming in and going out each month, you won’t know how much money you need for your emergency fund. And if you aren’t keeping a budget, you also have no idea whether you’re currently living below your means or overextending yourself. A budget is not a parent—it can’t and won’t force you to change your behavior—but it is a useful tool that can help you decide if you’re happy with where your money is going and where you stand financially.

 

[Sariana23]

Many times the measures that you can implement are not valid in unpredictable situations such as covid. But already with this experience, as you mentioned earlier, where they have had to close the business, it leaves an open door for you to readjust your measures in the future. One of those solutions, as many entrepreneurs have figured out, is online marketing and future sales.

 

[MizzLala]

I always wonder how huge corporations and established companies can just go down so easily as if they don't have any insurance or money set aside for such eventualities?! I feel that's very bad business practice. In desperate times such as the current pandemic, you also have to be forward-thinking and be able to think outside the box, diversify and respond to market trends. Like all these resturants moaning about the curfew in my country. I say they should just adjust their times, start earlier, offer food items they may not have offered before, offer a drive-through service and maybe even a delivery service they could also charge for. You just have to be responsive to whatever trends emerge and adapt.

 

[Goodday]

We have all seen the covid 19 impact on businesses across world . Some businesses have actually thrived and shatter their profit margins. Companies with industrial capacity across different sectors have made it big time, I know of companies during the covid that were allowed to run because they produce essential materials like food products and medical materials etc. While some other companies simply cannot recover from the financial implications of shutting down due to covid.
What are some the measures you can put in place to avoid or cushion against negative financial implications?

Business always is a risky adventure we undertake to manage and earn some profit for our efforts. For you to be able to overcome such unforseen losses that can occur in any period in the life of the business, you need to always plan ahead for those risk and losses by setting aside some resources that can help you tackle such losses in case they happen.

 

[Richard92]

You can caution your business against financial looses by carring out regular audit on your business. As a business owner you must have good financial management that carry out monthly, quarterly, and yearly audit on your business, this enable you to know the financial stand of your business.

 

[Frank]

In order to avoid financial lose in your business then you must have a good business plan. Make your budget before venturing into it. Ensure you dont make unnecessary spending at all time during the during of your business. Also, you have to observant to there is no wastage of materials in what ever you do.

There are uncertainties that can happen in businesses which having a good business plan can't see. I will always say it that what is most important is making room for bad debts in your financial statements. That way, you won't have to worry about certain challenges since you've factored them into your financial books.

 

[Emma Aneni]

The COVID-19 virus has made a lot of businesses lost much profits and gains. So in terms of not losing when you’re about to enter into any business make sure you make some plans and some budgets before you enter into any business. Everything now is all about calculating look before you leap.

 

[tuna89]

You are right, in addition, i prefer businesses that cater for daily needs which are generally in demand by the majority, also do make sure to have a good survey and market analysis in addition to your budget that outlines your resources and projects your expenses and gains, with all these on ground, you will be victorious even during hard times.

 

[Bilal0087]

We have all seen the covid 19 impact on businesses across world . Some businesses have actually thrived and shatter their profit margins. Companies with industrial capacity across different sectors have made it big time, I know of companies during the covid that were allowed to run because they produce essential materials like food products and medical materials etc. While some other companies simply cannot recover from the financial implications of shutting down due to covid.
What are some the measures you can put in place to avoid or cushion against negative financial implications?

Any type of business that have strong basic planning and backup plans to survive in emergency conditions, do not fall into losses, but if someone is facing problems in business, he must be patient and work harder to cope with difficult situations.
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We have all seen the covid 19 impact on businesses across world . Some businesses have actually thrived and shatter their profit margins. Companies with industrial capacity across different sectors have made it big time, I know of companies during the covid that were allowed to run because they produce essential materials like food products and medical materials etc. While some other companies simply cannot recover from the financial implications of shutting down due to covid.
What are some the measures you can put in place to avoid or cushion against negative financial implications?

Any type of business that have strong basic planning and backup plans to survive in emergency conditions, do not fall into losses, but if someone is facing problems in business, he must be patient and work harder to cope with difficult situations.

 

[Highflyer]

Do the proper maintenance on everything from your home to your health to avoid expensive problems down the road.

1. Maximize Your Liquid Savings. ...
2. Make a Budget. ...
3. Prepare to Minimize Your Monthly Bills. ...
4. Closely Manage Your Bills. ...
5. Take Stock of Your Non-Cash Assets and Maximize Their Value. ...
6. Pay Down Your Credit Card Debt.
7. Don't impulse spend.
8. Be realistic about your budgeting and forecasting.
9. Stay out of debt to avoid financial issues.
10. Utilize technology and software.
11. Purchasing the right insurance.
12. Start a safeguard cash fund.

 

[Jonaville1]

In this particular period of time, it is important for those running a business to do proper planning. They need to strategize on what they can do to boost product quality while not wasting resources. They can plan on

 

[btaliat]

Effective planning will solve this. You already plan for the positive and prepare against loss. If you have put this in your budget, it won't really affect you when loss comes. Because it is inevitable in business whether small or big.

 

[Osaz96]

The best thing to do is get enough financial and business intelligence to run your business or to make the work easier hire a financial advisor to put you through the numbers and the dos and donts of business as a whole. Also take records of everything that goes out and comes in

 

[Damismiling]

Corona virus as affected lots of businesses, especially business without online initiatives, looking at the outbreak, it caught every one unaware and many were not prepared for something of such, I believe the only way to overcome this is to Integrate businesses to online , so with that business can keep running and finances of company can boost high back

 

[Afeefah]

That is why business plans are important.
Before starting the business you strategize and plan on to manage future risks that might affect the business. Its also good to have a service online especially during this pandemic.
People could order online, you can advertise your services too.

 

[Shaffy]

The Covid-19 pandemic really hit businesses hard, especially those that require a lot of hands on labour.

One thing I believe would be helpful is to reduce the working hours for staff to reduce expenses, instead of cutting them off completely.

 

[Veetos12]

We have all seen the covid 19 impact on businesses across world . Some businesses have actually thrived and shatter their profit margins. Companies with industrial capacity across different sectors have made it big time, I know of companies during the covid that were allowed to run because they produce essential materials like food products and medical materials etc. While some other companies simply cannot recover from the financial implications of shutting down due to covid.
What are some the measures you can put in place to avoid or cushion against negative financial implications?

Financial risks are unpredictable and that is why it is important to plan against it. Many businesses find it hard to escape the trauma of financial losses and eventually follow up. I think the best way to cushion this financial shock is by investing in different businesses so that one can be used to assist the other in time of trouble.

 

[Ibrahim1]

As for me majority of companies will still go on lock down due to the COVID 19 pandemic and moreover it's not all the people will able to take such hit on there finances because there won't be anything for them and moreover we all know that all kinds of events are also going to be locked down

 

[Victor001]

Its simple logic, you need to make your assumptions practical. Create a scenario of the possible worst that can happen to you if you have a hiccup in your business. Then try to find a possible solution. The point is be self aware in every angle of the business.

 

[shakky2]

the relevance of this point cannot be overemphasized as it is a very crucial one.you have to be careful not to loose capital due to negative influence which may arise from every angle whether through a situation, circumstance,a period or through a person