The Coronavirus outbreak has not been easy on anyone, but some of the hardest hit individuals have been those running or working in small businesses. It is not the fear of the virus itself, but the impact it may have on economies and people’s earnings that are keeping up most at night! So how can small businesses survive the pandemic of COVID-19? Here are a few ways:
Work on Budget:
As a small business owner, one of the first steps you will have to take to keep yourself financially afloat will be to make a budget for your business. Your budget should list fixed and variable costs, in which fixed costs will be absolute priorities and will have to be kept paid to keep your business doors open. You will need to cut back on variable costs, which are not a complete necessity and won’t hinder your business’s functioning.
Cut back on Employees:
This may be a tough decision to make, but if the need is felt, you may have to cut back on a few employees to keep your business running during the outbreak. Choosing options such as layoffs and furloughs may be beneficial at this time.
The layoff will give your employee a temporary unpaid time off with the possibility they may join you later when the business is doing better. A furlough would mean they continue working but at a reduced rate, or may not work perhaps but is only paid a minimal amount.
Make Employees Work from Home:
If you cannot afford to lose employees, you may look into alternative methods, such as making them work from home. Many businesses have tried remote working for the first time during this lockdown. Increase your level of technology as cost-effectively as you can and make sure clear instructions are provided to your employees on how the business will be going about this.
Find other sources of Revenue:
Perhaps this would be a good time to find alternate sources of revenue if your original business functioning is not working as well. Alternative means of income may make you earn just enough to keep paying the bills. You may look into sales and marketing on this front. Whatever services you have chosen to provide in lockdown, make sure your customers know what they are and how you will be providing it to them safely.
Make use of Disaster Assistance Loans:
The government has allowed the possibility of small businesses at this time to apply for loans that may be essential to keep the business intact. If the situation is so bad that you find yourself in debt or unable to pay your crucial bills, applying for a loan may seem like a logical thing to do. However, remember, you will have to pay it back nonetheless, so be wise with it.
If you find your small businesses suffering during the outbreak, you need not worry as there a multiple things you can do to keep it alive. This will not last forever, so you need to hold on for a while!