The Corona Outbreak that started from the city of Wuhan. It is a Chinese Province is now has spread all over the world. Recently, the WHO declared it a global pandemic that is affecting the lives and commerce on a massive scale. Many major cities around the world, such as Italy, Spain, France and others have been undergoing a lockdown.
The number of population in the UK is also affected by COVID-19. It has resulted in the heavy downfall in the business sectors, especially the tourism industry. Many airlines have been empty due to the significant reduction in the loss of the passengers. Thus, if you run a travel agency, then it is quite evident that there has been a substantial reduction in the customer recently.
Useful tips to save your travel agency from insolvency
As for now, the UK has not been put under the lockdown by the government. But as the virus is spreading at a rapid pace, things can be changed. Your business might be profoundly affected by being part of the tourism industry.
The consistent loss in the business might even take you to the brink of bankruptcy, which is the worst thing that you could wish to happen. To assure that this nightmare of yours doesn’t turn into a reality, we have prepared a guided list of useful tips that can help your travel agency from getting insolvency. Now, let us get started.
Gather funds as much as possible
It is the time where generating revenues from the business would be difficult, especially for small firms. If your agency is struggling a lot in managing the business expenses, then gather funds as much as possible. Here are specific essential ways that you can follow to maintain the liquidity in the business:
- Approach an investor
- Use the savings
- Go for crowd Funding
- Visit banks
Still, if you are not able to get any financial assistance because of poor credit rating, then find a lender who offers loans for bad credit with no guarantor feature and those who are on benefits.
Work from home
When you are in this delicate situation where your business is struggling, then why not allow your employees to work from home? Firstly, it will keep the employees safe from the pandemic spreading as this is something necessary. Secondly, it will save you a lot of money in terms of utility and other corporate bills that you might face. There are plethoras of other benefits that working from home could bring to the business such as:
- Reduction in the overhead expenditures
- Higher productivity
- Boost the morale
- Environmental friendly
Offer great discounts in services
In such times when the market is stopping low with a lack of customers, you must find a way to retain them as much as possible. Try to offer discounts and a significant reduction in what you used to charge earlier.
There are still a few places where people are interested in going out within the country, so finding those customers. Also, provide local sightseeing services at an affordable price to the small counties where very people visit, and there is a lesser risk of the virus outbreak.
Cut the business cost
If your agency is facing cash flow issues because of the higher spending and smaller revenues, then try to cut it or minimise. Many things in the business drain a large amount of money, such as:
- Paying salaries
- Equipment cost
- Marketing cost
- Past debts
If possible, go with partial redundancies or, for the time being, reduce the salary to save money. Apart from that, don’t spend much on advertising and marketing. It is because the output might not be enough to compensate for the expenditures.
Approach your creditors
Not every business is fortunate enough to get started entirely with their finance. Most small firms and start-ups rely on external sources to manage the start-up cost. If you are already dealing with a heavy burden of debt and struggling to make the repayment, then approach your creditors for some negotiations or lessen the repayment amount. If needed, go with unsecured loans that require no guarantor to consolidate the debt into one single payment.
It is a difficult time for everyone, be it an individual or any firm. Take feasible steps to keep your business sinking and don’t hesitate to approach the external sources for financial backings if such a situation arises.