According to Yelp, 60% of business closures that arose from COVID will be permanent. That's millions of jobs forever lost and hundreds of thousands of entrepreneurial dreams crushed.
Since you're reading this post, your company is likely holding on in this shutdown depressed economy, but not by much. So then, how does running a business successfully look like in today's market? Is there anything you can do to guarantee company success despite the adversity?
While guaranteed success is an impossibility in any market, there are suggestions you can implement into your corporate workflow today that could help better position you to survive. Below, we share a few of the top tips we're seeing agile organizations successfully lean on during the Covid-19 pandemic economy.
Top 7 Tips For Running A Business During The Age Of Coronavirus
1. Invest in Digital Distribution
If it's possible to distribute your products and services digitally, do so. For the foreseeable future, many consumers are going to prefer to buy goods and services online. Even goods that need to be distributed physically can be sold over the net and can then be decimated via curbside pickup.
This, of course, isn't a solution for all businesses, particularly those that operate in the service sector. Give your business model some thought. If you can think of ways to sell while reducing in-person contact, go down those avenues.
2. Run Lean
Cutting the fat away from your business is key to surviving any kind of depressed economy. For example, several restaurants have severely limited their menu to focus just on their most popular items. That reduces the amount of inventory they need to order from vendors.
You might consider reducing your service offerings or product offerings in a similar way.
In addition to reducing what you sell, going lean could mean cutting employee pay, laying off individuals, canceling subscriptions, and anything else that might lower your capital exposure at the end of the month.
Making cuts is never an easy thing to do. When it's life or death for your company though, decisions need to be made.
3. Sell Gift Cards
If you have a loyal following that's being cautious and not visiting during today's heightened outbreak, ask them to invest in visiting you later in the year by buying gift cards.
Gift cards put cash in your company's pocket now which is when you need it the most. Though selling gift cards, you put yourself in a position to float through today's depressed market and then will take only small financial hits later when those cards are cashed in after things improve.
4. Take Out a Loan
It's hard to get a loan now because lenders are cautious given rising default rates. Still, there are loan products out there for qualified business owners that could give them the boost they need to get through the present adversity.
Shop around different banks and credit unions to see what products are on offer. If you qualify for something, take out the loan, use that influx of cash to keep your company alive, and pay it down gradually.
5. Consider Forbearance
For those of you that already have a loan and are at risk of getting sued over its defaulted on balance, explore a forbearance agreement. A forbearance agreement is a deal you make with your lender that says they won't sue you for X amount of time over your overdue balance.
In theory, your forbearance period should give you a chance to work out a more permanent solution with your lender or to refinance your debt under a new lender.
The last thing you want to be doing is managing court appearances while also trying to keep your company afloat. Forbearance can help you put some of your debt on the back burner so you can deal with more pressing matters.
6. Sell Shares
Bringing on investors is a great running a business during a pandemic tip that can bring in quick cash. To tackle this option, work with a business management professional to come up with your company's market value. With that number in mind, divide the value by however many shares you'd like to sell and try and get people to buy X amount of shares at that price.
If your company was worth $100,000 and you split it into 20 shares, you could theoretically get $5000 per share and bring partners into your business that can help you run it going forward.
7. Use Your Voice
For most businesses that are struggling to make ends meet, the demand for their services exists. What's keeping that demand from matriculating into sales are government-imposed sanctions.
If you feel strongly that more leeway should be given regarding shutdowns, let your city officials, congresspeople, and neighbors know. Only by using your voice and being unafraid to share your opinion on how today's crises are being managed can you create long-term change that will help pave the way for you to preserve your livelihood.
Running a Business During the Pandemic Presents Grave Challenges
No matter how adept you get at running a business during the COVID pandemic, understand that the odds are stacked heavily against you. Keeping that in mind, we hope you show yourself compassion through the successes and failures you will face as you maneuver while running a business.
For more information regarding the COVID business regulations that may be affecting your area, look to your county's website.
Are you eager to take in more tips on how to successfully run a business? If so, check out more of the entrepreneurial guidance we have posted on our blog. Visit the Startup section of the Bootstrap Business for additional advice and insights when running a business on a budget.
