The current outbreak of COVID-19 in Nigeria was not foreseen by anyone. Until recently the spread had been limited to other places in the world. Now it is right in our backyards, affecting our businesses and we are all reacting to it in the best ways we can.

If you don’t have an emergency fund (which experts say should be around three to six months’ income), don’t panic. To help prepare for the financial uncertainty that many of us are facing and will be facing as the coronavirus outbreak progresses, here are some money moves you can make now. These tips would help to protect your finances and build up a rainy day fund.

1. Scale back
This is not a time to be spending unnecessarily or excessively. Take a look at your cash flow and the money leaving your business, then cut back on non crucial and non-essential spending. Also, as funds come into your business, be sure to keep some money aside for your emergency fund. Another good tip is to put any money you are not spending due to the outbreak into the emergency fund. If you have an emergency fund already, you should still boost it by topping it up so it lasts longer as no one really knows how long the coronavirus outbreak will last for and what will happen after.

2. Build an emergency budget
This is different from emergency savings. It might be too late for you to start an emergency saving, but do not wait till it’s too late to create an emergency budget based on your reduced level of income.

Your emergency budget should contain core things your business needs depending on the current situation. It should be planned in such a way that it ensures that you can still run your business, and your business is able to survive this period. Start by outlining your most important expenses: fuel, data, rent, and other essentials. Consider your staff when making these decisions as well as the impact it will have on your clients and business.

3. Diversify
Coronavirus is already rewriting the future of the economy and businesses as we know globally. The business model that worked last month will probably not work this month. It is time to diversify. Help your business survive this period. Diversify and come up with services or products that you can offer, therefore taking advantage of the current situation.

4. Don’t take drastic decisions
As much as you want to stay safe and ensure that your employees are safe, don’t take drastic decisions. If you have obligations to fulfill that you cannot, communicate with the necessary parties. Don’t just ghost on them. Also make sure that communications between parties, especially where there might be a change in the contract, is written not just oral. It should be written and agreed on by all the involved parties.

5. Contact your lenders and loan servicers
If you are not able to pay back your loan or you are having difficulty or challenges paying back a business loan, contact your lender immediately to discuss your options. When you start missing deadlines without providing an explanation, there could be serious repercussions and it might also leave a negative impact on your credit.

When contacting your lenders, inform them of your situation and how much you can afford to pay at the moment. By being transparent with your lender, they will be more likely to trust that you are a responsible borrower. This will help you in the future if you decide that you’d like to apply for additional financing or a bigger loan. Remember that business will still have to continue after the cor60onavirus outbreak has passed.

6. Remember that this crisis shall pass
A final thought: The most important thing to do now is taking a deep breath and resist the urge to panic. Remember, do not panic. It will only lead to irrational thinking, which leads to poor financial decisions which might leave a negative impact on your business and reputation.

The COVID-19 pandemic is a terrible and frightening situation. There’s uncertainty surrounding how long the outbreak will last, how bad it will get, and many other variables. But we will get through it.

Stay healthy and stay safe.

Thanks for the info