Four (4) Financial Tools for the Post Pandemic Business

We all know that the past year (and counting) has been a mixed blessing for our business communities. Lockdowns and social distancing measures have saved lives, but they’ve also resulted in sharp declines in economic activity and all but shut down some critical sectors of our economies. But some businesses have experienced growth during this time, often because they managed to respond quickly by adapting their models and diversifying their offerings to suit our changing circumstances. Carrying this growth forward into the future, however, will require a different strategy altogether. In review, I expect that post-pandemic business success will require a combination of planning, perspective and the right tools to properly capitalize on the opportunities of the future. I recently shared my thoughts on the importance of building sustainability into our recovery in my last blog. Today I’d like to focus on financial tools and how these can help you take control of the future.

So, here’s my shortlist of essential financial tools for the post-pandemic business: .

1. E-commerce Solutions: Let’s start with an obvious one. The stratospheric rise of online shopping and digital payments is one of the biggest benefits to come out of this period and experts agree that it’s here to stay. Customers want to be able to shop online and to pay digitally, as do business to business partners. Digital payments can also help with more efficient management of cash flow and operational costs. If your business is not on board, now’s the time. Have a chat with your banking representative, they can help. Or, consider whether a payment platform might be right for you.
2. Business Credit Card: A business credit card is another tool that can help with efficiency. The primary benefit of a business credit card is access to a line of credit that allows your business to make purchases conveniently. That line of credit can be interest free if you pay of your balance in full each month. Furthermore credit cards are the stars of today’s low touch economy where the safety measures imposed by the COVID-19 pandemic have made payment by a tap or swipe of a card preferable to paying with cash. Added benefits include the ability to to manage your cash flow and employee expenses while allowing you to build a good credit history with your bank. This is a tool that useful for businesses of all sizes, but especially valuable for smaller businesses.
3. Online Banking: Online banking is another convenient and efficient tool for keeping track of expenditure as well as income, more so when combined with a business credit card because you get real-time, digital updates on your expenditure which are much easier to track than other forms of payment. We’ve seen how external events can disrupt access to your local branch with little warning. Online banking has been a lifeline for both our corporate and personal customers, allowing them to maintain secure and uninterrupted access to their accounts despite the circumstances. I’ve never seen a customer regret signing up for this service, and neither will you.
4. Financial Planning: We might not be able to control the future, but we sure can control how we plan for it. For some of us, the past year has exposed some painful gaps in the planning process. It’s been a valuable reminder of how even the basics of financial planning like sound cash flow management and thorough analysis of assets, liabilities, risks, and goals can make the difference in how quickly a business recovers from a setback. Take a look at this article and this online course. Resources like this can help you understand the key steps involved in developing a financial plan for your business.

You might have noticed that the one thing all of these tools have in common is an eye towards efficiency. We have learned some hard lessons from recent events; chief among them is that it pays to plan ahead, carefully manage risks and resources, while nurturing creativity, and agility. Let’s not let these lessons go to waste. The one true statement that we can make about this moment is that this too shall pass, and with the right outlook and the right tools, we can make the most of whatever comes next.