The novel corona virus has hammered businesses, especially the small ones, across the globe. According to the National Federation Of Independent Business (NFIB), around 92% of small businesses experienced hardships; however, approximately 5% of small business owners had no negative impacts.
Everyone is attempting to get back to normalcy or introducing “new normal” strategies. Having a solid plan to get out of the crisis is crucial. Before getting into the crux, get accounting services for your company; your small business needs a bookkeeper and an accountant. It’s because you’ve to rebuild your empire, and you cannot focus on creating your financial statements.
And to get onto the path of recovery, read on the blog. We’ve listed down six effective steps to revive your small business post-COVID-19.
1. Gain Knowledge Of Your Losses
The foremost step to bring your small business back into consciousness is examining your losses during that phase. For that reason, you ought to get the numbers. By that, we mean your financial statements, including profit and loss. Differentiate them with the 2018 and 2019’s statements to figure out the exact losses.
Besides, collect the data of your sales and cash flows to ponder the ways wherein your business has been affected. After that, take into account the areas from where you can cut down to recover the losses. Can you saw down the advertising or marketing costs? Identify ways that’ll aid you to retrieve.
2. Create A Solid Rebuilding Plan
You may have a thriving plan during pre-COVID times. However, they may need some re-tuning so that your business fits into the new normal zone. For this, you need to adapt technologies to a great extent. Pay close attention to your competitors’ innovations and find opportunities in that gap.
Furthermore, get clarity on your business’ strong and weak points and determine what’s working and what’s not working for profits. And again, look at your business mission. Get flexible with your business marketing and look for online marketing. People are still making purchases online. Therefore, create a plan for establishing your business on social media platforms (if not yet done); this idea is in trend.
3. Develop Multiple Sales Channels
Traditional sales is now bidding goodbye! The online platform is the hour of the need for many small businesses. Businesses who have simply one way for sales, take, for example, traditional, should now enter the modern world of marketing.
The best way to drive more sales is to open an e-store and provide delivery services for your products to customers’ homes. A few restaurants are recovering their losses through “Take-out” and “Delivery Only” schemes. Likewise, you can choose your mode of sales that fit your budget.
4. Ponder On Your Budgeting Needs
Having a dedicated amount of cash on hand for running a business is significant. Experts recommend keeping cash for at least six months. If you don’t have, then you require some capital. Several financial institutions provide business loans to highly affected businesses. In fact, governments of various countries have made aiding programs too. You can consider these options.
Alternatively, you can consider other funding sources too. They are:
- Business lines of credit
- Vendor tradelines
- Business credit cards
- Merchant cash advances
- Inventory financing
- Equipment financing
All of these have pros and cons. Weigh them and re-fund your business again.
5. Update Your Spending
For retrieving your losses, you’ve to spend before you make money. Maybe, you want to spend on providing training to employees on modern sales and marketing. Perhaps, you have to invest in new technologies for your business, for example, accounting, because financial management systems have changed a lot these days.
You can contemplate taking a serious step to update your spending. It could be adjourning from paying to yourself or employees for some months. Or else, cut off the salary to half. Depending on your needs, you can decide to get back on track as sooner as possible.
6. Give Your Rebuilding Plan A Timeline
We understand you want to pour your blood, sweat and tears to revive your business. But executing all your plans at one go may not be a sensible decision. Thus, prioritise your actions based on their importance. For example, the foremost goal may be to re-capitalise and then re-hire a few employees or re-train the existing ones.
As and when you proceed with your actions, track your recovery progress. Don’t invest much in activities that aren’t helping you to revive your business. Begin doing this on a weekly basis, then monthly, quarterly and yearly.
COVID-19 has caused major losses to start-ups and small businesses. However, the above-listed ideas can surely help you in reviving your business. However, during these times, you should make sound decisions as a business owner. It is because this is a milestone for many lives. In the coming years, I’m sure you’ll see outcomes coming your way.
Erika Rhein, a writer and blogger by profession, write on diverse topics. However, I always endeavour to provide users with useful and informative articles in a legible format. I aim to achieve a difference through my writing.