How Businesses Can Start Rebuilding

As the COVID-19 pandemic spread around the world, it left a trail of devastation in its wake. While governments are right to focus on the disease’s health effects, the pandemic has also harmed small business owners. An estimated 92 percent of small business owners say they have dealt with negative effects from COVID-19. In the short term, these businesses will   have to find ways to start rebuilding their revenue if they want to    stay open.

The extent of the problem depends on the company’s industry, size, and balance sheet. In some cases, recovery is not possible until it is safe for customers to start shopping again. Even if you are unable to start rebuilding right now, you can begin creating your exit  strategy for COVID-19. Then, you can make sure your small business is prepared when you are able to serve clients  again.

1: Look at the Damage

Before you can start rebuilding your small business, you need to know how badly you have been hurt. You should update your balance sheets and financial statements. Then, look at where your business is this year versus last year. You will also want to look at all the ways you have been affected so that you can create an effective recovery   plan.

2: Reconsider Your Business Plan

No one expected COVID-19 to happen, so there is no way your business plan could be prepared for this year. Now, you must understand your new normal. You may be unable to use foot traffic to bring in your sales anymore. If you are a restaurant, you may need to   adjust by creating outdoor seating or to-go options. The Small Business Administration (SBA) even has resources available to help businesses begin the rebuilding   process.

3: Bring in New Capital

Some businesses are fortunate and had large capital reserves before COVID-19 led to lockdowns. Most companies were not so lucky. If you do not have a lot of cash on hand, the SBA offers business loans and similar programs. The Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) are both great examples of the    SBA’s many options.

You can also get funding through inventory financing, business credit cards, vendor tradelines, business lines of credit, merchant cash advances, accounts receivable financing and purchase order  financing.

4: Adjust Your Budget

The next step in rebuilding your small business is to adjust your budget. Unfortunately, you may have to spend money before you can start earning money again. For example, you may need to buy face masks or train your employees on new policies. During your COVID-19 recovery, you should trim your operating    budget so that you can focus on rebuilding.

5: Make a COVID-19 Timeline

While your timeline for COVID-19 recovery may change over the next few months, it is still important to have a timeline ready. Your timeline will help you determine which steps to take first. For example, your small business may need to secure new funding sources to retrain your employees before you can reopen. Afterward, you may need to restock your inventory and advertise your new  hours.

COVID-19 was unexpected, but it is safe to assume that another crisis will happen at some point. A decade ago, the housing crisis knocked out weak businesses. In the 1970s, inflation and oil prices led to a crisis as well. Once your small business is back to normal, you should rebuild your cash savings and trim your budget so that your company is prepared for future crises.

As the COVID-19 pandemic spread around the world, it left a trail of devastation in its wake. While governments are right to focus on the disease’s health effects, the pandemic has also harmed small business owners. An estimated 92 percent of small business owners say they have dealt with negative effects from COVID-19. In the short term, these businesses will   have to find ways to start rebuilding their revenue if they want to    stay open.

The extent of the problem depends on the company’s industry, size, and balance sheet. In some cases, recovery is not possible until it is safe for customers to start shopping again. Even if you are unable to start rebuilding right now, you can begin creating your exit  strategy for COVID-19. Then, you can make sure your small business is prepared when you are able to serve clients  again.

6: Look at the Damage

Before you can start rebuilding your small business, you need to know how badly you have been hurt. You should update your balance sheets and financial statements. Then, look at where your business is this year versus last year. You will also want to look at all the ways you have been affected so that you can create an effective recovery   plan.

7: Reconsider Your Business Plan

No one expected COVID-19 to happen, so there is no way your business plan could be prepared for this year. Now, you must understand your new normal. You may be unable to use foot traffic to bring in your sales anymore. If you are a restaurant, you may need to   adjust by creating outdoor seating or to-go options. The Small Business Administration (SBA) even has resources available to help businesses begin the rebuilding   process.

8: Bring in New Capital

Some businesses are fortunate and had large capital reserves before COVID-19 led to lockdowns. Most companies were not so lucky. If you do not have a lot of cash on hand, the SBA offers business loans and similar programs. The Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) are both great examples of the    SBA’s many options.

You can also get funding through inventory financing, business credit cards, vendor tradelines, business lines of credit, merchant cash advances, accounts receivable financing and purchase order  financing.

9: Adjust Your Budget

The next step in rebuilding your small business is to adjust your budget. Unfortunately, you may have to spend money before you can start earning money again. For example, you may need to buy face masks or train your employees on new policies. During your COVID-19 recovery, you should trim your operating    budget so that you can focus on rebuilding.

10: Make a COVID-19 Timeline

While your timeline for COVID-19 recovery may change over the next few months, it is still important to have a timeline ready. Your timeline will help you determine which steps to take first. For example, your small business may need to secure new funding sources to retrain your employees before you can reopen. Afterward, you may need to restock your inventory and advertise your new  hours.

COVID-19 was unexpected, but it is safe to assume that another crisis will happen at some point. A decade ago, the housing crisis knocked out weak businesses. In the 1970s, inflation and oil prices led to a crisis as well. Once your small business is back to normal, you should rebuild your cash savings and trim your budget so that your company is prepared for future crises.