Many small business owners have been left gasping for breath following the pandemic, which has wreaked havoc on their businesses. Research has shown that the COVID-19 outbreak exposed the financial fragility of many small businesses in the US. However, the pandemic will fade, and everything will be business as usual, yet don’t expect everything to go back to usual. A COVID-19 exit plan should help navigate your recovery to rebuilding your brand. However, if you are unsure how your small business plan should look, here is how to restore your business.
Assess the financial damage
The first step towards developing your post-pandemic recovery plan is to determine the pandemic’s impact on your small business. Start by analyzing and evaluating the figures. It would be helpful to prepare your financial statements if you haven’t done that yet. You can compare numbers to establish the extent to which your small business has been affected. According to the NFIB, only 3% of small businesses admitted to benefiting from the pandemic, yet the damage may not be as severe as you think.
Determine if you’ll need funding for recovery
It is easier to jump-start your business if you have a significant amount of money placed away before the pandemic. However, if this isn’t so for your business, there are numerous ways to finance its rebuilding. The paycheck protection program and economic injury disaster program are some alternative programs designed to help small business owners struggling with funding to retain their employees and other business activities. These are state-funded programs, so the chances are that funds could be depleted before your application review. This is why you should consider other financing options like inventory financing, purchase order financing, vendor trade lines, business credit cards, and so on.
Reconsider your business plan
Your business may be effective pre-COVID, but coming out of it may require some fine-tuning. This means figuring out how to pivot your small business to adapt to the new normal. For instance, if your earlier marketing sales were based on foot traffic, it would help you consider how digitization can accommodate the increased shopping numbers from their homes. However, several resources help you plan, strategize, and scale your business to meet your review expectations. For example, a podcast by Dave Conklin provides more tips for creating new measurable and predictable revenue streams.
Cut out unnecessary expenditures
The pandemic has indeed taught everyone a lesson on what’s essential or otherwise. If you are a small business owner, then you’ve probably learned how to go lean, minimize cost, and run on the barest minimum during the chaos. It will serve your best interest to continue with the same financial frugality when the doors are reopened once again. If you had to run your business remotely during the pandemic, now may be an excellent time to consider your experiences. If it’s positive, then try cutting some estate costs and promote remote working. You’ll be surprised how quickly your profit margins will increase.
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