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It was reported by April that over 13 million Canadians have lost their job due to COVID report-ed The Globe & Mail. And even though Canada has overcome the peak of cases, many Canadi-ans are still without a job and that includes many business owners as well. Since the outbreak, many businesses have folded or struggling to stay open during these times.
What all this means is that many people are running on broken budgets. So to prevent this short-term crisis to cause any more financial strains on the long-term, Canadians need to start being a bit smarter with their money. Below are five key tips to help you in overcoming this pandemic on a financial level.
Have A Cash Reserve
Though this is late for other companies who folded already, it’s still something current companies can put together. Like with personal finances, it helps to have a reserve of cash that you’re able to fall back on in cases of emergencies.
If your business is making a surplus of cash – even if it’s small – set aside that amount and put it towards investments. Something as simple as a company savings account can help companies smooth over their finances. It can be helpful in keeping you solvent in case of the unfortunate event that a second wave of cases hits your town or province- which we sincerely hope it doesn’t.
Avoid Panic Selling
While a lot of companies folded due to this pandemic, we don’t all know the specifics behind it. Yes a pandemic has caused a lot of disruption, however we don’t know if owners acted out of panic or for other reasons.
Even though we are past the peek of cases, people are still displaying cautious optimism. We think it’s important for business owners to practice this as well. After all, in case we get a setback from COVID or something else, it’s important to keep a level head and not make decisions out of panicking.
Identify Wants From Needs
Both companies and our personal lives have shifted a lot these past few months. From all this, we’ve had to make adjustments about our own spending. What is important for us to have in or-der to get out of bed and survive? What is important for your business to run smoothly?
These particular questions are things you want to be asking yourself at the moment and making adjustments. This has created an opportunity for you to look at current expenses and determine whether your company actually needs the services or products to operate right now. This could free up cash for you to put into your cash reserve.
Use Line Of Credits If You Have To
Due to the state of the economy, banks today have been making lines of credit more widely available for small businesses and individuals alike. Mind you, you don’t want to get one for the sake of it, but rather to use in a time you absolutely need to.
Not only that, but many banks are okay with companies deferring payments to that line of credit for the time being. And at the very least, many businesses who do have line of credits right now are enjoying smaller rates of interest being charged. These efforts make it less risky for people should they fall back on these.
The Worst Is Behind Us
Right now with how things are going, the worst is behind us. We still need to be exercising social distancing and trying our best to flatten the curve of cases. This same attitude is something we can do as well for our own finances. If we exercise caution and act in a smart way now, we can bounce back from this.
