The Coronavirus caused many business owners to struggle to find ways of keeping their businesses running. However, many savvy owners have adapted new ways of remaining profitable, like offering takeout-only options at restaurants and contactless pickup for businesses everywhere else.
If you want your business to be resilient through COVID-19 and for many years after, you’ll want to take the necessary steps to protect your business from failure and find success amid the uncertainty.
Here are five strategies businesses should use to recover from COVID-19 and find prosperity in their market.
1. Prioritize Safety
The first and most important course of action for small businesses to take to recover from COVID-19 is to build and regain trust with both employees and customers.
You can build trust with customers by taking measures to improve your business and help them feel safe.
If your business operates out of a brick-and-mortar location, make sure you set up safety precautions so that customers can maintain social distancing at all times. You’ll likely want to offer hand sanitizer and require masks that prevent the spread of pathogens.
If your business operates mostly online, consider bolstering online security and focusing on protecting your customer’s data.
Businesses can build trust with employees by prioritizing their physical and mental health.
To build trust, consider adding mental health insurance to employee benefits, enforce social distancing in the office and do whatever it takes to preserve employee’s jobs.
Businesses where employees trust their executive team become more productive, feel a greater sense of community, and report greater overall wellbeing and health.
2. Manage Capital Wisely
Small businesses should have at least six months worth of expenses in cash saved. This money will pay for rent, inventory, salaries, and any other expense related to the business.
Savings can provide relief in times of need and hardship. Develop a treasury plan to turn this theory into a reality while prioritizing sustainable cash flow over riskier areas of revenue.
3. Take Advantage of Technology
With more employees working from home, there’s never been a better time to restructure the business than now. Businesses can leverage technology to become more efficient and effective in offering their product or service.
Consider what tools your business can adopt and which will help you reduce operational costs and automate tasks.
Another benefit of adopting a more digital focus for your business is being able to capitalize on the shift towards work-from-home culture. With accessible tools to help employees work remotely, your business is more likely to find success.
4. Use the Stimulus Wisely
Small business owners can find help from their government to assist in their finances.
Many governments are offering loan forgiveness for loans that keep small businesses afloat and keep employees on the payroll (sole proprietors can also qualify). Some government stimulus programs are also offering financial assistance for suppliers and tax payments.
With interest rates at an all-time low, businesses can leverage lower costs to enhance their business offerings.
5. Restructure Your Business
Many businesses are starting to adapt to COVID-19 by utilizing entirely new business models. Doctors, therapists, and other health professionals are connecting with patients remotely using telecommunication services to reduce the spread of pathogens.
Pay attention to the areas where your business is hurting and consider how technology can help.
For example, if your business requires your product to be touched or experienced, consider offering a free sample or month-long trial period. If you’re in the restaurant business, take advantage of online delivery platforms.
These are challenging times to be running a small business. You can soften the impact COVID-19 has had on your small business by prioritizing safety, managing capital, taking advantage of technology, using the stimulus wisely, and restructuring your business.
