How Do I Rebuild My Small Business Post Covid-19?

Source: Form Pxhere

Globally, Covid-19 has wreaked havoc for many business owners. This is especially so for small and medium sized enterprises. In the U.S., 92% of small businesses have suffered negative effects. Only 5% said they had no ill effects.

The short-term outlook may vary by industry, nonetheless, it is useful to consider the recovery mode upon normalcy of some sort. If you are not sure what to do, then this 5-step plan may help you.

1.         Assess the Financial Damage

        Just like a tsunami or an earthquake, the first step is to determine how deeply has Covid-19 impacted your business. It is good to update cash flows and projections for next 18-24 months. Then there are employees furloughed or terminated. What is the cost of re-hiring them and by when? Other costs like advertising and marketing may need a fresh assessment, especially with online sales gaining momentum.

2.         Re-calibrate Business Plan

        Digital expansion may need to be looked into, with many consumers shopping from home. It is good to re-assess competitors, industry outlook, and your own strengths and weaknesses. Find the niche where you can remain competitive and re-calibrate goals with the U-shaped recovery anticipated.

3.         Funding for Recovery

        Many may require working capital to jump start the business. Very few would have sufficient cash going into a lockdown. There are several schemes offered by the Government. And many of these are administered by banks. (Connect with MP Capital Advisory if you need advise).

4.         Create a Timeline for Re-build

          There are several things to do in a re-build mode. So, having a timeline with priorities will be helpful. The other important part is to track progress. Plans go awry when tracking is deficient. It could be weekly and then perhaps much later monthly.

5.         Contingency Plan

       Although Covid-19 is a rare event, the reality is an emergency may come along anytime. Preparing for the next crisis helps insulate your business from future shocks. Building cash reserve, reducing debt, trimming non-essential spending are all steps to improve a situation or a “Black Swan” event.

The pandemic has changed many things for all of us – wash hands regularly, social distancing, wear a face mask and check your temperature. For business, it is having Plan B or C or D that improves survival of a business.

Stay adaptable and fluid to weather the storms!

References:

1. 6 ways to Rebuild Your Small Business, Rebecca Lake, Forbes, April 30, 2020

2. Covid-19 – 8 Practical Tips for Business Owners, Store Hub

3. How to Plan Your Company’s Future During the Pandemic, Andy Baldwin, Global Managing Partner, Client Services, EY, 25 April 2020