More and more restrictions around the world during the coronavirus pandemic took a big toll in the entire business world. Entrepreneurs, businessmen, investors, and brokers alike find themselves in a financial hurricane.
To find out what exactly to cling to these weeks has become quite of challenging. And so is finding the right decisions to make in this crisis.
While there is a growing concern on the markets in different economic areas, there are also ways to get to the safe harbor after the storm passes.
Here are five tips on how to do just that.
1. Drop the stocks and investments which are no longer profitable on the long run
We have seen what the crisis has already done to the world and to some economic and industrial sectors. This is a time to drop and forget – if you have not done that yet – the stocks of the oil companies, the travel industry, and the entertainment and live events, or other investments in these areas. And we are talking here about bookings, airlines, hotels and other resorts, almost all kinds of live events, cruises and even restaurants.
Some of them which are giants may – or may not – get out well alive and kicking after this crisis, but that is a risk, because coming back from that will not be easy for anyone.
2. Find the right stocks to invest in
The next thing to do would be to find those stocks in which to invest. A good rule is to keep investing in what previously fared good or excellent. Once the crisis is over, you have to be sure that stock will not nosedive. There are plenty of recommendations these days, but strong companies like Netflix, Amazon, Alphabet, Apple, Walmart, or even Alibaba may be a good idea.
Also, keep in mind that banks, healthcare brands, telecommunication, fast-food, and supermarkets are still on the market, and thriving by the way. So, is either a megacap, a large-cap, mid-cap or even small-cap growth stock, the decision might as well be a good one.
3. Have an invoice maker from Invoice2go to keep the financial score
A reliable online billing service will not only spare a lot of headache, but will also reduce costs. An invoice maker from Invoice2go will do the trick. This service helps midsize businesses and freelancer to better handle their invoices.
The platform has many pros coming from the most intuitive billing software. Some of the advantages are the time-saving auto-invoicing, the recurring payments, and the mobile apps for Android and iOS devices, but also for Windows or Mac. It also offers a great financial reporting function, plenty of invoice or tracking features, and other tools.
The service comes with a 14 days free trial and prices are as low as $9.9 per month. It is exclusively cloud-based and comes in English and Dutch.
4. Save money
Now we know that an investment in online invoicing software will reduce costs and will help saving money. The money that will be saved from paperwork or salary for an accountant can be used, for example, for reinvesting into stocks that are profitable during the crisis.
And identifying ways to cut back is important nowadays. The ongoing expenses which are not critical must go, especially when the interaction is more and more online and through apps and other software means. Each cent counts and, at the end of the month, the financial status is more important than other unessential expenses. Bottom line, the business has to survive and has to hold on to start rise again after the crisis, so start prioritizing expenses.
5. Find that balance
Last but not least, finding just the right balance not just in costs and expenses, but also in business actions will have a great impact on relaxing and starting fresh under the new circumstances.
One thing to do is not to panic in these situations and make well-informed decisions, plan for every outcome, and find opportunities. There will be best-case scenarios, worst-case scenarios, or something between them. Keeping a cool attitude towards your business plans, or to the clients – if the case – will make the difference. That is because, while a certain outcome or scenario cannot be avoided, preparing for it has to be mathematical precision.
Then again, a well-balanced cash flow helps you keep the business going without having to risk it all to whatever comes. More than never, the outflows have to be very carefully planned and accomplished. As mentioned before, new payment options, like using online tools, can help. In fact, focusing on online business will have you see new opportunities and maybe cut some costs.
New sources of revenue will also help not being dependent on the old ones which may be fluctuating in times of crisis. Changing and adapting is a good thing when it comes to financial decisions, and