The COVID-19 outbreak caused a lot of instability around the globe, which left many small-business owners struggling to survive. According to a report by the National Federation of Independent Business (NFIB) which was published by Forbes, as of March 30th, 92% of small businesses said they had suffered negative effects which were caused by the pandemic. Only 5% of the small-business owners said that they did not face any challenges nor did it have effects on their business.
For a business to bounce back, there has to be a strategic plan. It is important to consider the shape the recovery mode would take once the economy begins to return to normal. It is crucial for a business to have an exit strategy in place after the pandemic which would help prepare to hit the ground and begin the rebuilding process. If you own a business or a key decision-maker in one, these 5 Tips could give you an idea of how to get your business back on track.
Critically Assess the financial damage
This is the first step in developing a plan that would revive the business. You should update your financial statements such as profit and loss or cash flow statements. Compare last year’s numbers to know how much your business may be down. Apart from the figures, try and understand other ways in which your business has been affected. For example, if you had to cut down on advertising and marketing budget or laid off some staff, you would have to account for these as it would help rebuild your business.
Revisit your Business Plan
Your business model may have worked perfectly fine before the COVID-19 pandemic, but coming out of it may mean you have to adjust some things to suit the recent situation of things. As a business owner, one way to rebuild your business after the COVID-19 pandemic is to think of ways your business can seamlessly adjust to the new normal.
For example, if your business sorely depends on physical sales and customer interaction, you may seriously start considering digital expansion as many customers may likely not want to buy from the physical shop. Analyze how your sector has been affected by the pandemic, watch your competitors and find out how they are adapting, pay close attention to trends and try to find new opportunities.
Overhaul your Budget to Account for new spending
The Post-COVID era may need you to spend more money to make money. You may need to hire a few more hands, re-train new and existing employees. It would make sense at this stage to have a clear-cut idea of what you would be budgeted for and how much specifically would be needed for expenses.
Try your best to eliminate waste and keep the budget lean. Be frugal and spend on only important things that would impact positively on the business and lead to profit. If it is necessary, defer your wages or take a pay cut. If you need a freelance accounting professional to assist in budgeting or any other professional in another field, you could get one on Bixex.
Have a timeline for the Rebuilding
Doing everything at once may not be realistic. Have a time frame to complete each rebuilding phase and try to stick to the time. Take on the most important tasks or actions first. If the first step is to secure funding for your business then focus on it and set a date to complete that.
After that, sequentially move to the next phase which could be hiring more staff which may be followed by restocking, and then you open for business. Always track your progress and improve where need be. As you execute each phase, always be observant to know which steps are working and which aren’t.
Create a Contingency plan in case of Next Crisis
The COVID-19 pandemic is an eye-opener to many businesses. Though it may seem like a once-in-a-lifetime event, the truth remains that an emergency of that nature may likely come up in the future. And this would also disrupt business operations. Since something of that nature has happened already, you may want to use what you have learned to prepare for the next crisis even before it comes.
When there is a concrete plan, then you wouldn’t be shocked if it does happen. The pandemic would surely have taught you how to face business challenges, resilience and expose you to managing a remote team. This would be what you want to incorporate in your business model henceforth.
Many Business owners on Bixex have not found the rebuilding process easy, but many are back on track and their business has been recording growth once more. You could connect with some of them by signing up here.
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Read Also: 10 Mistakes Business Owners are making in their Business.