The global pandemic is creating havoc both on lives and businesses! The stock market is plummeting, and our world economy is almost making its way towards a worst recession. COVID-19 is indeed hampering all aspects of life. Even though the reports might vary, but a few reports suggest that this pandemic might flatten down to a considerable extent in the next eight weeks. But we all have to play our parts in social distancing and maintain the safety and sanitation protocols.
In terms of the business landscape, it’s the small business firms that are likely to get affected most by the pandemic. Their business expansion plans will have to get reworked, and few campaigns will need to be on hold. Even though they are trying to minimize the virus risk, still no one is aware of the ideal solution.
EJ Dalius highlights the problems small businesses face
Studies and surveys reveal that most small businesses usually available reserve cash for 27 days. It doesn’t help as the lockdown will carry on for a while on, in cycles of approximately 21 days. Hence, most small businesses anticipate that they might have to shut down all operations. Alternatively, if the company qualifies under essential services, the owner might decide to work on alternate days, with minimal employees.
Business experts like Eric J Dalius and others opine that small businesses will run into a loss if it shut over a month. Also, they will require the interest-free loans as well as other cash reserves for clearing expenses and paying the employees and staff. Once the lockdown is over, small businesses might be able to make the required changes to their expenditure list. However, no one, as of now, knows when the global lockdown is going to get over.
With many business experts suggesting that an economic recession might be on the cards, small businesses might have to deal with more problems. But it is essential to work out a solution during the lockdown phase as well. There are funding options from the various funding resources. But small businesses need to follow some essential tips to revive their business.
Some of the smart solutions are:
- Going digital
Do you own a cafeteria? Or own a restaurant? If yes, no way can you keep your restaurant/cafeteria open. So, the ideal situation is to take orders online. Alternatively, if you belong to industry vertical, for instance, the construction business, make sure to launch a website. If you already have one, refresh the website and make it more user friendly. The idea is simple. You need to shift online for a while, and for that, you should make all the necessary arrangements. You can create payment channels through Google Pay and carry on with the transactions. It will help you to do some business in your region and the local markets.
- It’s time to rethink and redesign
It’s essential now to rethink, reorganize, and redesign all your services/products as well as the production tactics you use. Take time to think if you can come up with more useful and cost-efficient ways of production. It will be helpful in the long-run and will also help you to earn profits.
- You can apply for the small business administration (SBA)loans
Do you need money to make the necessary business changes? If yes, you can opt-in for SBA loans for emergencies. Using the loan, you can keep paying the outstanding bills. It will help you to draw in the loan and maintain solvency.
- Remain solvent
The financial experts and leading entrepreneurs like Eric Dalius assert that small businesses should stay solvent right now. And it might be possible to avert recession and recover at the earliest. On the other hand, the insolvent businesses might become completely bankrupt.
- Try and renegotiate the debt and contract terms
If you are a creative entrepreneur or a small business owner, this suggestion applies to you! The frequency of work has slowed down, and people are not making the money they used to make before. Hence, business owners should rethink the retainer fees. That way, they can have the money needed to pay the necessary bills. They might also request the concerned authorities to postpone their interests on the unpaid debt amount for a temporary time. It will help them from getting into a debt trap.
- Analyze the operational and business risk
Review your business accurately and assess the various operational aspects. You might as well come across a few areas of your business that needs careful amends. You can get speaking with the staff, address the problems they are facing and give them the necessary help to feel productive.
- Get speaking with your clients
In a pandemic situation like this, trust is a critical issue! No one knows if your old clients will decide to carry on their business terms with you. Hence, you need to keep communicating with them to understand their mindset. If there’s a problem at hand, take time to give attention to it and resolve the same. No one wants to lose their important clients till such time everything gets back to normalcy.
- Assess the supply chain management
It is essential to stay in constant touch with all your suppliers and customers. You need to evaluate the demand for specific products and the supply as well. After that, you should provide what the customer needs, which in turn allows you to make profits as well.
These are some of the solutions that small businesses can opt-in for! Seeking donations in authentic online platforms is also a smart option. There are business patrons and other lenders who might be interested in lending money as per their capacity. It is especially beneficial for creative entrepreneurs and small business owners specializing in the creative arts and entertainment domain. You need to set-up multiple payment gateways for you to accept donations from various sources.
Small business firms form an important part of society and the economy globally! These businesses must thrive; else we will miss out on some of the essential services and products. The solutions discussed above can help immensely.