Running a small business is always challenging, but the coronavirus pandemic has turned things upside down. No two industries were affected the same way.
Large legacy companies like Brooks Brothers have declared bankruptcy, while others like Amazon and Walmart consolidate their market share. Meanwhile, smaller businesses need to sell whatever they can in any way that’s safe and in full compliance with local health ordinances.
Remaining open during the coronavirus has taken business owners lots of hard work and resourcefulness. Unfortunately, there have also been very difficult decisions to make regarding layoffs.
In Canada, to keep supporting other small businesses and avoid mass layoffs, the federal government will cover 75% of payroll wages for small businesses, giving companies who apply for this funding a one- year interest-free loan. Every business owner needs to review their books carefully, weigh their options, and chart the course forward that makes the most sense for them.
This could involve some difficult choices and conversations. If you had to layoff one or more employees, be upfront and compassionate. Ensure they know it was for no fault of their own and keep them informed about helpful resources.
EI And CERB
In Canada, workers who have been let go temporarily or permanently are entitled to Employment Insurance benefits, along with the Canada Emergency Response Benefit (CERB), a $2,000 per month taxable benefit.
Businesses large and small may be struggling right now, but there are supports in place for you and all your employees.
Debt Management Programs
In addition to special recourses put in place to mitigate the impact of the coronavirus, make sure you and your employees know about all the financial planning resources available. There are certified Credit Counsellors from non-profit counselling agencies who can help people build a budget and combat personal debt.
If you or your employees have multiple debts, they can make them easier to pay off by reducing the level of interest rates you pay or eliminating them altogether. There will only be one monthly payment to make, and it’ll finally put a stop to collection calls.
People are understandably sensitive when talking about their finances, but money management is an essential conversation; climbing out of debt can bring people closer to major life goals, like owning a house or saving for retirement. That’s why the certified Credit Counsellors you speak with need to provide holistic support and unbiased, non-judgemental counselling.
For sensitive, personalized, and affordable financial planning and debt management help for business owners and all their employees, speak to a certified Credit Counsellor.
Make Smarter Decisions Managing Your Small Business Finances
Managing a business during the coronavirus pandemic has required flexibility, patience, hard work and a cooperative spirit. Small business owners need to find the best way to operate in new conditions, and must make sure they use every financial planning and debt management resource possible. Their business depends on it, and so do all their employees.
