For the months that COVID-19 has been around, everyone has done everything they could to hold onto their business, from closing temporarily and having employees to work remotely to borrowing money just to stay afloat. It’s going to be a slow, uncomfortable ride back. Here are some things small business owners should consider as they reopen their businesses.
Navigating the New Normal
Small business’s economic importance is unquestioned. They make up a large percentage of the economy and employ a significant workforce. What affects small business ripples through the global economy.
Most small businesses today have taken a drastic hit during the COVID crisis. The lack of demand, the stay-at-home orders, the health questions, and ultimately, not enough money to go around have already caused most small businesses to cancel their planned investments for the year.
Again, the whole economy feels the ripple effect as vendors, who work for small businesses feel the pinch. Here are some ideas to help you navigate the economic downturn.
Honest Assessment is the Key
The first thing to do is make an in-depth assessment of where your business stands financially. Compare your 2020 profit/loss statement with 2019. Take a look at assets and the operational costs that go with them. Unfortunately, you will also have to take a long look at your human resources. With everything on the table, your next steps should become clearer.
Now assess the drop in revenue. According to the NFIC, only five percent of small businesses have prospered during the pandemic. If you can afford to sustain your business the way you did before the pandemic, we’re guessing you make masks, toilet paper, and hand sanitizer. The rest of us need help.
Get the Help You Need
Most governments have some sort of economic small business relief package. In the US, the Cares Act includes the Paycheck Protection Program (PPP), which provides low-interest loans of up to $10 million to eligible businesses. It’s a business owner’s responsibility to apply.
If your business doesn’t qualify for government assistance, you need to keep looking. There are many places to get the help you need, but it’s a lengthy process. You need to get in the pipeline as soon as possible, so start burning that midnight oil to save your business.
Use Automation to Your Advantage
Automation increases efficiency and may help keep you from having to fire everyone. You probably already have the tools to use automation, and when you automate repetitive and menial tasks, your staff can focus on revenue-generating endeavors. Quikteks’ IT professionals can help you decide how to integrate automation into your business.
You’ll have to make some hard choices and adjustments to get your business through the pandemic. If you are in the NY/NJ metro area and you want to talk to IT professionals about how technology can help keep your business afloat during COVID, give us a call at (973) 882-4644. We can help.