corona epidemic has created havoc on businesses worldwide, including the US. Based
on the findings of the National Federation of Independent Business (NFIB), 92
percent of SMBs have been plagued with the adverse effects of the pandemic.
However, only five percent of businesses had no negative impact due to corona.
to an article published on https://www.forbes.com,
it is important to mull over what rebound technique will appear when the
economy bounces back to normalcy. If you have an exit plan after the pandemic
is over, it will help your business to rebuild. Here is how:
Understand the financial damage
Are your cash flow or profit and also loss statements updated? If not, you need to do so right now. Once you have updated records, compare these with your last year’s statements to figure out the extent of your financial damage due to the corona pandemic. Based on the data by NFIB, the damage may not be that bad as perceived.
Besides the hard numbers associated with profits, cash flow, and also sales, you need to figure out how your business has been affected in other ways due to COVID-19 and also subsequent lockdown. For instance, if you have sacked some of your staff, you will need to take into account this factor while rebuilding your business.
Again, if you have cut back on your marketing and also adverting spend, or a couple of your customers have moved to your competitors, you will need to consider these to recognize financial resources to ensure your business recovery.
Figure out whether you need funding
you do not have adequate cash reserves, you may need some additional funding to
rebuild your business after the corona pandemic. You can opt for SBA, which is
an evident loan option for business owners. Apart from that, you can consider
the Paycheck Protection Program to fund your small business when you are
struggling hard to retain your employees amid the epidemic.
There are other options such as Economic Injury Disaster Loans to assist with short-term financing in case you need some money apart from staff retention. Then, the challenge of federally-controlled programs is their restrained funding. There are chances that all funds would be exhausted even before your application is assessed. Therefore, you need to consider other funding options such as small business term loans, conventional SBAs and also microloans, business credit cards, business lines of credit, merchant cash advances, and also more.
Think of a timeline to rebuild your
Build a timeline to rebuild your business to prioritize the most essential tasks first. Your initial goal is to procure funds for your business. Once that’s done, you can decide a timeline to rehire staff, restock products, and also then reopen your business after the pandemic.
When you start rebuilding your business, monitor your progress, and also it is important if you have taken loans to fund your venture. That is because there is no point in wasting time on things that give you poor or no returns at all.
Rebuilding your business after the COVID-19 pandemic will take some time, but it will lead to fruition if you take correct strategic steps.