If you have not been living under a rock all this time, you are aware of the impact the novel coronavirus has had on the corporate world. Small businesses, in particular, are suffering because they account for a considerable share of the vulnerable jobs, which are concentrated in various industries like food services, accommodation, retailing, and construction. Even if they ensure a source of innovation and competition, small businesses are struggling to make ends meet. The smaller the company is, the harder the impact is.
Right now, the COVID-19 virus is taking a toll on all businesses, whether small or large. Is there a reason for hope? As a matter of fact, there is. Surviving the crisis brought about by the global pandemic is possible, hard as it may be. There are opportunities to embrace; it is just that they are not clearly visible. If you are an entrepreneur, take a step back, build a plan, and make sure that you advance with clarity. Even if you completely run out of money, you can make it through the coronavirus crisis. Please continue reading to discover what the best ways are to respond to the COVID-19 crisis.
Table of Contents
Keep an open line of communication with employees and clients
In the context of the novel coronavirus outbreak, it is more important than ever to maintain internal and external communications. If you are a true leader, you will not leave people in the lurch. There is no better time than now to reach out to employees and customers. People want to know what is going on. To be more precise, they need reassurance that everything will be okay. Increase the level of communication and transparency. If you choose to stay silent and not address the elephant in the room, you will suffer dire consequences. This translates into losing loyal employees, not to mention your prospects.
Let the people within your organization know when and where they will be receiving communications. You can use email or try a more modern approach, such as Skype. Most importantly, you should be prepared for feedback. The responses to the messages may be exaggerated and you have the current situation to blame for this. People are anxious around the potential impact of the virus, besides the fact that they fear losing their jobs. What you need to understand is that the social and economic impact that comes with COVID-19 can really affect people.
If you keep an open line of communication, you will build credibility among clients and they will appreciate the transparency. Create an update on your corporate blog describing the measures taken during this time. Equally helpful is to put your email and social media accounts to good use. If you have something useful and relevant to say, do not waste any more time. You do not have all the answers, but you can provide some insight, which is no little thing. You have the chance to strengthen your relationship with your clients by offering value and expertise.
How to survive running out of money
Small businesses are more likely to run out of money because they have lower sales, smaller assets, and a smaller number of employees. Small companies cannot compare to big ones. What can be done when the money is all gone? There is no magic solution for this situation. What could work in your particular circumstance might not be helpful to another entrepreneur. This is why you should concentrate your attention on the strategies that are fit to keep your business afloat. Small business loans can provide debt capital and much-needed resources to businesses struggling to make it. Taking out a loan is a solution you need to consider.
When the worst of moments strike, you need to be prepared. Getting access to financing is not the hardest thing in the world, but neither is it easy. Find a reputable business loan provider and show them that you are worthy of their time. Your reason for resorting to external financing will dictate the type of loan that you will receive. If you need to manage day-to-day operations, you can obtain a small business loan from several places. Compare two or three similar options based on the terms and costs and make a decision.
Keep in mind that the global pandemic does not give you a carte blanche to stop paying your bills or postpone salaries. Others expect you to run your company as if nothing had ever happened. Start developing a survival plan right away. As far as the business loan is concerned, there will be questions around the topic of cash flow or cash management. And let us not forget about the repayment ability. Lenders simply want to know if you are the best applicant. If you lack collateral or do not have enough experience in business, consider reaching out to alternative lenders. Banks are not always the solution.
Create a business continuity plan
One way or the other, your small business will survive the COVID-19 pandemic and get back on the road to recovery. Having a continuity plan in place matters because you can never know what could happen. No one had ever imagined that a pandemic of these gigantic proportions would hit, yet it happened and all we can do is try to survive. The point is that there will always be something to cause an unplanned disruption. If you have a disaster recovery plan, you are able to save processes, assets, human resources, and, last but not least, business partners.
Think about the future, even if it seems that time will not bring anything positive. Figure out what resources you need to deliver your products or services, internally and externally, and determine the roles of the employees. This will enable your organization to endure changes without having to adapt all the time. In other words, you are preparing yourself for the unprepared. Include precautions in your plan. Ensure that you are sufficiently prepared for everything.