Small businesses – Surviving COVID19
In 2007 when the great financial crisis hit, I was running a small but successful mortgage company. Things went downhill quickly, and I learned some key lessons that I will never forget. Based on that experience, my knowledge gained from 12 years of interacting with small businesses and my discussions with business owners, lenders and community leaders. I would like to offer my advice on how to navigate this difficult time. Here are five tips I came up with.
Don’t Bleed Cash
The worse thing you can do at a time is to run through your reserves. Take a cold hard look at your expenses and decide what is truly essential to your business and trim non-essential costs. This is a difficult process and takes some effort. Most businesses have costs that can be cut without harming performance. Start there. The hardest decision will be employees. Try to work with them. Offer temporarily furlough, reduce hours or wages before letting them go. But don’t bite the hand that feeds you. There are expenditures and people that are critical to your business and you will to do all your can to maintain those.
Seek New Revenue
Now is the time to seek out new revenue sources that you may have overlooked in the past. Analyze current revenue streams. Look at all your revenue sources and see if you can focus on what will bring in the most money in the coming days, weeks and months.
Get Help
businesses need help and its on its way. I put together some links to SBA disaster loan programs. There is some red tape, but it may be just what you need to stay afloat. Click here to find out more about he
SBA Disaster Loan program
.
There are other places you can go for help too. Check with your local and State Government to see what help they can offer. Speak with your lenders, creditors, landlords. See if they are willing to assist you through these tough times. But be reasonable and remember they have bills to pay too.
Reposition
Even in worst of times some businesses prosper. Sit down restaurants are hurting. But I am speaking to Restaurant owners focused on takeout and delivery and some of them are doing better than ever. If the customers are no longer coming to you maybe you can go to them.
With good reason people are concerned about infection. I spoke today with a gentleman who had appliance repairmen come to his house. They arrived in hazmat like suits and explained how their work process would prevent contamination. This put him at instant ease. The companies that figure out how to meet the changing needs and concerns of their clients will still thrive.
Adapt
This is a new world and you will need to change with it. Look for advise where you can find it. Speak with your employees. Find out what they are hearing and what their concerns are. Look at how your rivals and competitors are dealing with this crisis. Try new thinks and if they don’t work discard them and find another way.
This crisis may be with us for some time yet but if we adjust and adapt, we can come out the other side stronger, fitter and leaner. Ready to take advantage of the bounce back.
Stay Safe
One last thought. No matter what please put the safety of your yourself, your employees and your customers first. We will get through this if we pull together. Stay safe!
Anthony John Rigney BCI
Business Broker