The COVID-19 pandemic has caused financial turmoil around the world, impacting most business sectors in some way and leaving many small business owners struggling.
While short term recovery varies from sector to sector, all small business owners need to consider what their recovery model will look like when the economy starts to get back on its feet.
Having a recovery plan in place can help you hit the ground running and get your business back on track as quickly as possible.
Here we have pulled together some tips as to what your recovery planning should consider.
The first step to developing a recovery plan is to determine the impact COVID-19 has had your business. Start by reviewing your profit and loss statements and comparing them to last years to establish how much business is down. You may also have had to lay off employees or reduce marketing costs so these should also be built into any recovery plan.
Revisit your business plan. Your business model may have worked seamlessly pre-COVID-19 but post-pandemic, it may need some fine-tuning to adjust it to what the “new normal” looks like. For example, suppose you previously relied on foot traffic. In that case, you may need to consider a digital solution for consumers who are now spending more online. Take a look at how your industry and competitors have been affected, pay attention to any trends and focus on identifying opportunities. Be realistic. Any targets you had set pre-COVID-19 will need to be scaled down to accommodate weak Q2 and Q3 performance levels or sales.
Unless your business had a healthy amount of cash sitting idly before the pandemic hit, your business might likely need a cash injection to jumpstart operations. The UK Government have several schemes designed to support small business owners. You can review your options at https://www.gov.uk/business-coronavirus-support-finder. If you are considering a loan to help you rebuild, keep in mind that borrowing may be more competitive, as lenders might want additional assurances that loans can be repaid.
Ultimately, coming out of the COVID-19 pandemic, it may be necessary to spend money before you make money. You may need to re-employ new staff, conduct additional training, purchase stock or ramp up your marketing plans. As part of your recovery plan, make sure that you have a clear idea of what you need to budget for and what you can cut, to make the most of any revenue you have coming in. The objective is to keep your budget as lean as possible, removing any unnecessary spend. One option may be to either postpone paying yourself or taking a pay cut to help your business get back on its feet. While this will depend on your personal or home circumstances, skipping a few wage slips will undoubtedly help your business get back on its feet quicker.
There may be new initiatives that you want to do and try to help you get back on your feet, but it is unrealistic to try and do everything at once. Identify a timeline and prioritise. Regularly check your progress and be quick to identify anything that isn’t working.
While the COVID-19 pandemic may seem like a “once in a lifetime” event, the reality is that an emergency can happen, that may impact your business, at any time. Now is the time to be prepared and isolate your business from future surprises. For example, building up assets or cash savings may be a priority.
If the pandemic has taught us anything, it is that we must be able to adapt and keep business moving to weather the storms ahead. If employees didn’t have the option to work remotely in the past, maybe now is the time to review current working practices and incorporate changes into your business model going forwards. The more we think outside the box, the better your chances will be to survive another crisis and come out the other side unscathed.
If you need any staffing support to help you get your business back on its feet, give us a call at CareerJuice on 07818 504480.