NEGROS OCCIDENTAL, Oct. 4 (PIA) — As community quarantine takes its heavy toll on local business in the whole province of Negros Occidental including Bacolod City, a business leader here advises entrepreneurs to stay positive on their cash management.
Latest report from the Department of Industry (DTI) Negros Occidental shows that close to 800 micro scale enterprises in the province and Bacolod have folded due to the coronavirus disease 2019 (COVID-19) pandemic.
Given the scenario, Metro Bacolod Chamber of Commerce and Industry (MBCCI) Chief Executive Officer Frank Carbon urged local business owners to preserve their cash and avoid investing.
“This is not the time to invest in non-revenue generating assets, instead convert your non- revenue assets to cash stay cash positive,” he said.
Also, a daily cash flow statement must be prepared, he added.
To stay afloat, Carbon said unnecessary expenses must be reduced such as payroll, rent, power, water, entertainment and to look for cheaper substitute.
“Extend store hours, introduce new products or services and explore other products or services you may offer to your existing customers,” he said.
According to him, prices should not be pressed down, instead, offer bulk purchase discount or cash purchase discount. He said stores can offer promo sales or reduced prices during payday.
“Consider delivery service, on-line selling and ‘order, pick-up n go’ service,” he suggested.
As a golden rule during these trying times, Carbon said “never think of downgrading the quality of one’s products. ‘Another brand’ may be introduced if you want to compete with others.”
The lifestyle of a businessman should also be tamed to only go for the basics.
Carbon said a big cash in one’s wallet could pose a temptation, so keep the bills low inside it.
“Keep your credit cards at home including extended cards to your wife and children,” he said
He further advised beleaguered traders to ask for government’s help to keep their business running.
Government Financial Institutions such as the Development Bank of the Philippines, Land Bank, Department of Trade and Industry’s Small Business Corporation have special loan windows for rehabilitation of Micro, Small and Medium Enterprises (MSMEs), he pointed out.
“Cash is king, cash is power, so preserve your cash,” Carbon said. (JSC/Lljr/PIA6 Negros Occidental)
Source: Philippines Information Agency (pia.gov.ph)
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