4 Tips to Help Your Small Business Survive Covid-19
The coronavirus pandemic will hit small businesses the hardest compared to big businesses. There is no doubt about this. This is because small businesses mostly survive on a smaller amount of cash flow which can only go for a few months. On the contrary, big businesses tend to have large sums of cash flow to survive on for longer periods.
Thus, when something as big as a pandemic hits the small businesses, the consequences can be devastating. However, with prior planning small businesses can survive uncertain times such as these. Below are tips to help you, as a small business owner, survive during this coronavirus pandemic.
1.Take Advantage of Government and Financial Institutions Resources
Governments all over the world are already setting up initiatives to help small business owners during these tough times. These incentives keep changing every day. Thus, it is advisable to be up to date with the ways in which your government can help you cut costs. Governments offer their support through incentives like stimulus packages.
Besides the government, financial institutions like banks, have also taken up their social responsibility and are assisting small businesses during these times.
2. Stay Calm
It is very easy to panic, lose balance and make drastic decisions during a crisis. However, you should try to avoid this. Instead, take good care of yourself by eating well, taking time to meditate and exercising.
It can be difficult to remain clam when you are running out of cash but remember panicking doesn’t help either.
When you are calm, your staff will also be calm and your business environment and mood is going to be sufficient for idea sharing and decision making. You and your staff are more likely to think critically with a healthier mindset.
If need be, you can take a step back, reassess the situation, and ask for trusted advice. You can also get emotional help if you need to.
3. Capitalize On the Situation
Even though it is not nice to take advantage so situations like Covid-19 pandemic, sometimes the situation can be a great wake-up call on how you handle your business.
Take time and critically reexamine your business model. Is your business model capable of withstanding the harsh reality we are currently in? Are you able to go digital on terms of offering your services or products online? How technologically equipped is your business to withstand these times?
4. Cut Costs
Your major costs are your employee salaries and the office rent. Thus see how you can pay your employees and your rent for the next three months. You can also include your supplies in this payroll. Once done, critically consider the options you have in cutting costs.
One of these options you may have can be freezing of hiring new permanent employees, and consider working with freelancers instead. The other option can be adopting a co-working space so you get a flexible and affordable payment terms. The coronavirus pandemic has affected several businesses, if not all. Therefore, keep in mind that you are not alone in this. Implement the tips above and keep your head up.