The COVID-19 pandemic has caused widespread wreckage when it comes to small businesses. 92% of small businesses claim that the pandemic has severely impacted them. Furthermore, according to smallbiztrends.com, 45% of small businesses have earned half or less than half of the revenue that they made in the year before the pandemic the last year.
If your business has been impacted, here are a few valuable tips on how to rebuild it after the pandemic:
Balance Sheet
Everything comes down to the financial numbers. Profit and loss are the everyday words when doing business. If you are trying to rebuild your company, you need to assess yourself and where you stand in terms of finances. Update your financial statements and compare your revenue to last year. Moreover, your cash flow statement is equally important. You must reconsider your marketing budget post-pandemic. Perhaps do away with certain retail locations as physical stores may be less necessary as numerous businesses have been functioning online due to COVID-19-related restrictions. Therefore, online presence is essential now.
Funding
Banks are already a hard bargain when it comes to obtaining fundings. If you already had a loan before the pandemic, it will be harder for you to get a new one. At this time, you must have your eyes out for new potential investors. You can explore options like small business grants, crowdfunding, inventory financing, and accounts receivable financing.
Diversify
The pandemic has affected many industries. Airlines, oil, and gas, hotels, retail shops have all suffered damage. You may be working in these industries, but have you stopped and consider which of the industries have boomed in the pandemic? Yes, they are those software firms, E-commerce, online education, food delivery, and home exercise have thrived during the lockdowns. You may be miles away from these industries, but it would not hurt you to diversify your business portfolio. The least you can do is have your presence online to reach the masses, as a majority of the people are finding solutions to their problems online after the coronavirus outbreak.
Contingency Plans
When you are rebuilding your business, it is important to come up with contingency business plans. They allow investors, creditors, or banks to feel secure with you - because you have planned for the future. Should there be another pandemic wave and more lockdowns, you will have a plan B to support your business. This way, your business can also get the right type of funding.
Conclusion
If you want to know more about how you can win the game of business after COVID-19, visit my website www.daveroby.com. I, Dave Roby, am an International Business Coach and can help you on your way to success. Connect with me today!