Being (and staying) financially healthy means re-examining your financial situation from time to time. Do my expenses fit my current situation? Are there any expenses that are no longer relevant? Am I spending money on things that are now much cheaper or can be done differently? In short: time for an evaluation.
The best first step is to start with the part you can control well: your expenses. Go through the last 3-6 months, and analyze all expenses. Break them down into the following categories:
- Mandatory expenses (business accommodation, transportation, website)
- Desired expenses (eating out, new laptop)
- Future/savings (investments, trainings, education)
For all expenses in these categories, check:
- Can I pause them?
- Can I reduce them?
- Can I eliminate them?
Adjust your spending habits according to your new plan.
Can your business continue to grow?
In addition, it's a good idea to think honestly about your business. Look at your business and see if there are any improvements you can make so that your business can continue to grow. Ask yourself the following questions:
- Is my product or service strong enough to generate a large and steady income from it over the next few years? Do I need to change my proposition, and/or add a new service?
- Is my positioning distinctive enough to generate leads during and after this crisis?
- Is my price still right? Too high, or too low?
- Is my reach/network big enough?
- Do I have enough partnerships?
- Is my skillset ready to win in my market in the coming years?
Analyze what could block or accelerate your long-term growth. Put this into a plan and work on it this quarter.