When the pandemic started, many businesses across the country closed. It also caused financial issues to many companies that remained open since sales went down as their customers stayed home to avoid getting infected. They had to resort to online sales so they can connect with their market.
Even as many businesses are starting to recover, the outlook remains uncertain as the economy has yet to fully recover from the financial crisis brought about by the pandemic. While some companies had exit strategies prepared before the pandemic started, the majority had to deal with trying to find a way to survive and avoid getting the services of bankruptcy lawyers.
Businesses that are planning to rebuild once the pandemic is over can consider the following things.
Evaluate the Finances
Before rebuilding, businesses should check their finances to see how much they were affected by the pandemic. These businesses might not have crunched the numbers since they were focused on connecting with their market during the pandemic. At this point, they may need to update their financial statements and compare them with the previous years. Some businesses benefited from the pandemic, but most struggled as the demand for their product and services went down.
Aside from the figures associated with their sales, businesses should also consider the overall effect of the pandemic. This means they should consider the employees they laid off to cut costs. They should take this into account, especially if they are planning to rehire them. Businesses should also consider their marketing budget since they have to connect with customers that went to their competitors during the pandemic. Additionally, businesses should identify potential sources of funds that they can tap.
Review the Business Plan
When the business created the business plan, it might not have considered a pandemic of global proportions. The business should review its business plan and make the necessary adjustments with the pandemic in mind.
The business should take a look at its sales channels. It may have relied too much on foot traffic, and when the pandemic happened, its market focused mainly on online transactions. With this, the business should focus its efforts on digital marketing. It should also enhance its website to increase its online presence.
At this point, it may consider taking advantage of the mentoring services offered through SCORE and the Small Business Administration (SBA). The mentoring service focuses on issues related to the pandemic. Businesses should also look at how the pandemic affected their industry and how their competitors fared in the market.
Looking at the strengths and weaknesses of the business is also crucial to allow the business to position itself in the market properly. It should also check its business goals to ensure it is realistic and attainable, especially with the market’s current situation.
Look at Potential Funding Sources
After evaluating the plan, businesses should consider looking for potential sources of funds. This is essential to allow the business to start its operations. The SBA offers several options for funding for businesses looking to rebuild or restart their operations.
Many of these sources are ideal for working capital, acquiring equipment, and expanding the business. The amounts also vary from $2,500 up to $15,000,0000 depending on the industry. But one caveat for these funding options is the limitation of the available funds. So, businesses should start preparing the necessary documents to take advantage of the sources of funds.
Businesses should also take into account the requirements of these funding companies. Some of these companies may require outstanding invoices or credit card sales. While there are other options if your sales were slow, businesses should be aware that the interest rates for these types of loans may be higher.
Re-evaluate the Budget
Businesses should also re-evaluate their budget since they have to consider the new spending it’s making to rebuild after the pandemic. The business may need to invest in the training of new employees. It will also have to replenish its inventory, which adds to its expenses.
The business may also have to increase its promotional budget to reach its market, especially for customers that have gone online. In addition to this, it will have to increase its digital marketing efforts. This requires hiring specialists who can help the business with its online marketing efforts. Getting the services of a web development company can also help spruce up its website and increase its online presence.
Rebuilding a business after the pandemic requires the business owner to evaluate the business from top to bottom. The owner should also take the effects of the pandemic into account while working on the plans for the reopening of the business.