Small Businesses across the country have been hit hardest hit by the COVID-19 pandemic. Larger businesses have a better chance of survival; however small businesses will only live for a few months with a limited cash reserve.
Small Businesses across the country have been hit hardest hit by the COVID-19 pandemic. Larger businesses have a better chance of survival; however small businesses will only live for a few months with a limited cash reserve. When something as big as these pandemic hits, it becomes difficult not only for the business owner but also for the employees they support. So, how can small business owners survive the turbulent times that follow the COVID-19 pandemic? There are no one-word answers. However, there are certain steps that you can follow to sail through these difficult times.
Don’t panic, take care and hold your calm
This can be really difficult especially when cash is running out quickly, always remember to take good care of yourself in a manner that works for you- for instance, eat timely, exercise well, and get enough rest. This will keep your mind calm which will, in turn, keep your staff calm and therefore make space for a healthier mindset for everyone to think of new and innovative ideas to move ahead. Always remember to calm your mind before getting involved with any form of decision making. In this situation, it is better to step back- reassess and ask for trusted opinions; rather than taking actions immediately. Ask for emotional support when needed.
Tap into the aid provided by the government
Responsible governments around the world are putting initiatives together to support small and medium scale businesses. Make sure to keep up to date with how the government aid can help cut business costs, as well as other support systems such as banks that also have social responsibilities. If you are registered in more than one market (eg. the UK), make sure to learn about the other market’s government aid for small businesses as well. However, these plans can change overnight, so being up to date is key during this time.
Prime Minister Justin Trudeau has announced a deck of plans to support small businesses facing the economic impacts of this pandemic. These measures will help Canadian small businesses protect the jobs that Canadians depend on to pay their employees and utilities in this difficult time. The proposed plan already commits $107 billion in aid for these businesses. You can tap into many of these resources depending on the type of business you run. Check your eligibility and take advantage of plans such as the Business Credit Availability Program (BCAP), the Canada Emergency Wage Subsidy (CEWS) and the Canada Emergency Response Benefit (CERB).
Plan your 3-month financial strategy
All small businesses have the same key expenses, this includes office rent, salaries, and utility bills. Other expenses vary from industry to industry.
Talk to who you need to pay in the coming three months (landlords and business suppliers) and figure out what options you have to spread out the expenses. There is a high chance that there will be options in place, as it should be in their best interest to keep your business running. Always have a plan for payments to other small businesses as they need to keep afloat too.
Analyze your personal expenses and talk to the people you support to have a realistic idea of how your personal expenses can be controlled and divided in the next three months.
See if you can cut costs. But use this as the last measure against the difficulties that the COVID-19 pandemic will create. You can perhaps stop hiring any full-time employees, and instead, look for project-based freelancers. You can also downsize your office or use a co-working space for more flexible payment terms.
Upskill your staff
It is advised that you keep your staff- they depend on you, and if you have secured a good team, they must already be supporting you. Train your existing staff for additional skills, which will make them more productive, rather than hiring new full-time employees. In this digital age, there are plenty of affordable online courses that your staff could learn from. This will allow them to focus on other areas of the business when their department is out of work- for instance, salespeople can help the marketing team when they are out of work.
Small and medium-sized businesses in Canada have had a substantial positive impact on the Canadian economy over the last few years. With the progressive evolution of the economy that is primarily due to small and medium-sized businesses, there’s never been the need more than now to have the Canadian SME Magazine. Every month, our readers will have the opportunity to read different articles about how to improve their business, upcoming events, interviews with people who have an influence on small and medium-sized enterprises and any tips on how to take their company to the next level. Canadian SME Magazine comes up with focused and fact proven content to develop the credibility of the growing businesses in Canada. It will provide solutions as well as tips on how to deal with different challenges that all business owners will come across while managing their company and ensuring its success.