The immense shift in business due to the Coronavirus pandemic has caused a number of small businesses to close. There simply was not enough capital for some businesses to survive. The operation costs at a business like a restaurant can put the owner in a hole financially in a matter of a month or two. Other businesses had better luck as they could allow employees to work from home for extended periods.
Create New Streams of Revenue
The number of restaurants that offer takeout or delivery is higher than ever before. There were even 5-star restaurants that offered this in New York City as a new form of revenue. A digital marketing company might offer social media services if they primarily focus on web design or online advertising. The same company could open an ecommerce store utilizing drop shipping as they understand how to market it. The overhead can be extremely low on this project when utilizing drop shipping. In today’s digital world it is easier than ever for some businesses to offer new services or products.
Reduce Costs Where Possible
Reducing costs is going to be extremely important going into the future. These costs can include rent, contractor payments, and other monthly/quarterly bills. You can give work to employees to do off of the clock that you would give to contractors. This can give them added income during this time as many people are staying at home with plenty of free time. Freelancers can be a huge help during this time if you had to let go of employees due to financial reasons. Being able to lower costs by a few thousand dollars a month can allow a small business to squeak by until the world economy recovers.
Furlough Employees Where Possible
There are a number of furloughed employees that will return to work in the near future. A number of companies reduced the salaries of employees by a certain percentage. There were so many professionals that were simply happy to have a job during this period. A business that brings employees back shows loyalty to those that helped them in the past. Letting employees go permanently might be the only option depending on the circumstance. Revenue generating positions should be prioritized during this time like sales, marketing, and production.
Look into the Paycheck Protection Program
The federal government created the Paycheck Protection Program to help small businesses survive this unexpected time in history. The next round of funding will be available once a second stimulus package is approved. Taking a look at a PPP loan database will allow you to see how much your business qualifies for. This loan can even be forgiven to a certain point which makes it a great opportunity for small businesses.
Businesses that were otherwise stable have been rocked by the pandemic. The management of money for businesses will change as emergency funds are going to be far more prevalent. Growing businesses will be done in a more cautious way as expanding then encountering another pandemic is a recipe for disaster. Utilize the tips above to help your business survive this uncertain time.