The coronavirus pandemic has had a devastating impact on just about everyone. But its effects have been particularly devastating upon businesses. Many businesses have already failed directly because of the virus and many more will fail in the immediate future. But your business does not need to be one of them.
This article describes 5 ways in which you can help your business recover from the pandemic and even thrive in the new economy that we now find ourselves living in.
1. Get a Business Loan or a Line of Credit
The lock-downs associated with the pandemic shuttered many businesses for an extended period. Many other businesses that remained opened experienced severe downturns. All of this has caused serious cash-flow problems, which has threatened the survival of these businesses. One of the simplest ways to overcome this is through a business loan.
There are many different types of business loans that you can get. This includes those that have been offered by the government specifically to mitigate the effects of the pandemic, which often come with advantageous terms. Your business may also qualify for a variety of commercial loans that are offered by private lenders.
While taking a business loan during a crisis can provide a solution to cash-flow problems, it’s also important to remember that if your company is failing to meet its short-term obligations without accumulating debt, a business loan will only delay the inevitable. When choosing a business loan, it’s important to take into account how much each payment will be, how long it will take you to pay back and how much interest you will pay over the lifetime of the loan.
2. Adapt Your Business to the New Economy
Every business must face the simple fact that the pandemic in many ways has changed the environment in which their business has operated irrevocably. To survive in this new environment, businesses must adapt to it.
One of the best (and easiest) ways of doing this is by moving your business online. Because so many people now want to avoid directly contacting others when making purchases, there has been a tremendous increase of eCommerce during the crisis. Try to take advantage of this trend, by selling your goods and/or services over the Internet. If you already do this, expand on it. Also, explore the many ways in which you can harness the power of digital marketing.
3. Renegotiate Your Business Agreements
It is important to realize that your company is not the only business hurting because of the pandemic. The companies that you conduct business with are also hurting. These can include:
You now may be able to significantly renegotiate the terms of the agreements that you have with them, which can considerably reduce your expenses and increase your profitability. If they refuse to renegotiate, try to make agreements with their competitors instead.
4. Reduce Your Expenses
Renegotiating your business agreements is not the only way that you can reduce your expenses. There are many other means.
If your company is like most, payroll likely accounts for a large chunk of your expenses. So, look for ways of reducing this, either by eliminating job functions or outsourcing them to third parties. If you have hourly employees, you may also want to consider reducing their hours. This can often result in a significant reduction of benefits as well.
Finally, analyze your business processes and try to streamline them as much as possible and make them more cost-efficient. You may also want to automate them, too, if you can.
5. Find New Markets
You can make your business more profitable by not just reducing expenses, but also by increasing your sales. Often, the best way of doing this is by expanding the markets that you serve.
If you are a retailer, consider selling to businesses as well. Also, try to think outside of the box and find non-traditional customers for your products and/or services.
One of the best ways of expanding your markets is by taking your business global. In recent years, the world has gotten smaller and it has become easier than ever to sell to customers in countries all over the world.
While your business has likely been adversely affected by the coronavirus pandemic, this need not be fatal. By taking some combination of the steps that have been outlined in this article, you can make certain that not only will your business survive in the new economy but that it will also succeed.