Most business owners have realized by now that operating their company after coronavirus shutdowns and implementation of government health and safety standards will be much different than before the crisis. The biggest change might be creating a new budget and thinking of how you spend money for your business in new ways. Below are some tips we hope you find helpful as a business owner in trying times.
Make Repaying Debt Related to Coronavirus a Priority
The leaders of many companies, especially those considered small businesses, had to borrow money to make up for the loss of revenue while they couldn’t operate their business normal hours. Some were fortunate enough to secure forgivable loans from federal or state governments but not all.
If you had to take on debt these past few months that you weren’t anticipating, be sure to prioritize paying it back to avoid creating long-term debt and the interest that comes with it. Only your necessary monthly payments and emergency fund should come first. Any extra funds you can put towards your newly acquired debt will help it disappear that much faster.
Re-Evaluate Your Business Budget
Like millions of business owners across the country, your revenue has likely taken a big hit over the past three to four months. If your company budget still reflects pre-coronavirus numbers, now is the time to overhaul it completely.
Your new budget should reflect the drop in business income and adjustments for expenditures. This will require you and your employees to make some sacrifices like eliminating unnecessary spending and reduce expenses as much as possible in other areas. For example, you may be able to negotiate with vendors to lower the cost of some fixed expenses or take longer to pay what you owe without incurring a penalty.
Create New Sales Channels and Nurture Existing Leads
To succeed in business, you need a steady supply of new customers along with those who return to purchase your products or services time and again. This could require some creative thinking, especially if you do business in a hard-hit state that still has many restrictions on business operations in place. If you have a limited online presence, now is the time to beef it up. Investing in marketing campaigns to find new customers and spending time to make your company website as user-friendly as possible should both go a long way in bringing in new customers.
It’s also important to reach out to existing customers to see if you can help them in any way. Check in with them regularly and provide reassurance that you’re prepared to remake your business model if necessary. Just knowing your company is there should a need arise will help to put many people at ease.
Prepare for a Huge Demand
While dealing with lost revenue among this worldwide pandemic has certainly been challenging, the news isn’t all bad. Many people who have been staying home for months are ready to spend money again. In fact, the demand for your products or services could catch you off-guard if you’re not prepared. Be sure to evaluate foot traffic or other metrics if you don’t provide in-person services and ramp up for the spike in demand. Two ways you can do this are ensuring adequate staffing and availability of your company’s products and services.
For additional help with creating your post-coronavirus recovery plan, please schedule a consultation with Business Partner Alliance. You can learn more about our many services to business owners here.