The COVID-19 pandemic has affected everyone around the world, especially businesses. Because of the sudden restrictions and lockdowns, many businesses found themselves on the brink, or even amid, a financial crisis.
If you are one of the businesspeople who have to power through a financial crisis in the pandemic, you must be looking for ways to protect yourself from the risk of financial loss. To help you get back on your feet, here are some strategies you can execute:
Understanding, and even anticipating, the cause of a financial crisis is the first step to overcoming it and protecting the business. When you have the right information, you can strategically plan short- and long-term solutions that address the specific roots of a financial crisis.
However, before strategizing anything, you should know that a financial crisis can be caused by internal factors, such as conflicts of interest and poor governance. It can also be brought about by external factors, such as a global health predicament that can catch you unaware and unprepared.
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Aside from understanding the roots of a financial crisis, you should know how to future-proof your business in case you face this kind of problem. To do this, you should think about what will happen to your business when you encounter a financial crisis. You should also consider the best-case and worst-case scenarios and come up with a contingency plan for each.
Make sure to include timelines in your evaluation so you can stay prepared no matter how long the financial crisis lasts. Whether you face the effects of the crisis for three, six, or 12 months, you’ll have a plan to overcome any obstacle.
Facing a financial crisis means you have fewer resources to pay for additional expenses. That is why when you’re making a plan to future-proof a business, you should begin by analyzing all your existing expenditures and determining how you can reduce non-essential costs.
You can make your evaluation easier by asking yourself the following questions:
Answering these questions can help you prioritize your essential expenses and take steps to reduce and eliminate the not-so-important items.
Additionally, you should spend time assessing your business processes and determining if your team members are being efficient enough. After all, you should guarantee that the money you spend on labor is worth every cent, especially during a financial crisis. Doing so will help you ensure that your business stays open and that your employees have a place to work in.
One thing you can do to make your processes more efficient is to cut down on time-consuming and manual processes. Instead, you can find ways to automate time-consuming processes or outsource them to a third-party service provider for lesser costs. Once you do this, you can reallocate the expenses being allocated for manpower and utilities to other more essential resources.
Because there may be lesser profit coming in during a financial crisis, you must learn to prioritize your business expenses if you want your organization to stay afloat. This means that, aside from streamlining costly procedures, you should avoid any unnecessary expenses. Additionally, you must thoroughly review any payments for purchases that are not business-critical.
When future-proofing your business for a financial crisis, you should strictly allocate your business’s operating budget to investments that can help you gain more profit, such as operations, sales, and marketing. Expansion plans must also be put on hold unless there is an assurance of immediate and significant gain.
Ultimately, you should be ready to adapt to whatever circumstance the financial crisis brings. If you’re dealing with a short-term financial problem, you must be ready to cut costs on recruitment, marketing, travel, and other variable costs.
Long-term problems, on the other hand, may be hard to prepare for, so you should be ready to adjust at any time. Just remember that strict monitoring of cash flow will be vital in overcoming potential challenges. Moreover, having a clear view of profit and loss will allow business owners to craft viable strategies for growth and survival.
When a financial crisis hits, you must evaluate and redo your sales strategies to be able to adapt to the times. Doing so will allow you to unceasingly address your customers’ unique needs and ensure a continuous cash inflow to your business.
One instance where businesses were encouraged to develop new sales strategies is when the COVID-19 pandemic hit. Because of the strict lockdowns, brick-and-mortar stores were forced to close. This caused retail businesses to lose their source of income.
However, many business owners found a brilliant way to address this problem. Instead of waiting for lockdown restrictions to be lifted, they turned to online sales and digital marketing, which turned out to be a sound decision.
According to a survey conducted by Rakuten Insight in the Philippines, 63% of the consumers confirmed that they have increased their online shopping activities. This meant that even if retail businesses couldn’t open their physical stores, they were still able to generate income.
You should do the same when faced with a financial crisis. You must be ready to try new sales strategies that will help you earn money no matter the challenges.
Aside from observing the above-mentioned steps, it is also important that you stay on top of your game, with the help of the right life insurance and investment policy. Different kinds of insurance policies for business owners are available, so make sure to research which product can adequately provide for your respective needs and requirements.
One of the best options for you is a variable unit life (VUL) insurance policy. Securing this kind of policy, which effectively combines coverage and investment in one product, can help you seize and maximize profit-building opportunities while ensuring that your dependents are well provided for, in the event of unforeseen circumstances.
To maximize your growth potential while reducing the risk of loss, choose Allianz PNB Life's 1 million one-time investment, Maximal Power. It is a single pay, unit-linked life insurance product that maximizes your investments by putting them into expertly managed funds while providing superior lifetime insurance protection of at least 130% of the single premium you paid. The Maximal Power plan is available in both Philippine Peso (PHP) and US Dollar (USD) denominations.
Allianz PNB Life lets you get the most out of your investment by only imposing a fixed charge/rate, instead of deducting premium charges.
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These are four of the best ways how Maximal Power lets businesses not just survive, but thrive, in times of crisis. Allianz PNB Life will work with you to guarantee that you get the best out of your investments and maximize your wealth.
Overcoming a financial crisis can be tough. You may be anxious about the different obstacles it can bring to your business.
But when you use the strategies listed above, you’ll be prepared enough to overcome any problem that comes your way.
Ultimately, you need a dependable ally by your side to assist you during a financial crisis. That’s where Allianz PNB Life comes in. Count on us to provide you with the protection that you and your business need.
Allianz PNB Life has proven itself to be a reputable and trustworthy financial services partner, serving customers in over 70 countries. We began our operations in 2001 and have since grown to become among the major life insurance providers in the Philippines. We look forward to protecting you while helping you grow your wealth. Contact us today for more information.
