COVID-19 has affected the whole planet – every country, every business, and every person. We all are striving for the improvement of the current situation and we all will need to adapt to changes. Pandemic won’t be eternal, so people will have to go back to reality. However, this reality might not be what you’ve expected.
Thousands of people have lost their jobs and don’t know if they can get back on track once the pandemic is gone. If you are a business owner, here is a guide to rebuild your finance plan during COVID-19 and remain financially afloat.
Monetary Help for Your Venture
Before we talk about reshaping your venture and adapting it to the new standards, you need to ensure your business survives in terms of finances. Many business owners experience money shortfalls from time to time. If you build business credit you will have more opportunities to acquire cheaper insurance or lower rates on lending services. This is especially relevant in challenging times of COVID-19 pandemic when many businesses suffer around the world and may need an extra financial hand to stay afloat. When you establish a good business credit rating, you will be eligible for better terms.
“Coronavirus has already affected our businesses and each of us is trying to survive. It’s time to seek new revenue streams and right strategies to lessen the costs and keep ventures afloat,” — Bruce Eckfeldt, a business coach.
How to Rebuild the Business Finance Plan
Due to the current situation in the world, the previous strategies for business development and growth might not work anymore. Thus, it’s time to get ready and reshape your business methods. Here is a step by step guide on how to fix your finance plan:
1. Determine Your Present Situation.
- How is your business doing right now? What things need to be repaired? Define the current state of your venture and think about what you can fix. Try to devote some time to your strengths, weaknesses, threats, and opportunities. These four things will be extremely helpful for you to outshine the competitors.
2. Use Your Emergency Savings. Your emergency funds may be a lifesaver during these challenging times. If you don’t have at least 3 or 4 months of expenses on your account, your venture may be in serious trouble. Opt for the most suitable financial aid or lending solution if you need to pay for rent or your employees’ salary.
3. Define Your Targets. It might happen that your old goals don’t work for now and you need to establish new short-term goals for the next few months, as well as long-term targets for the next 3 or 5 years. What would you like to achieve? How do you see the future of your company?
4. Do Your Research. How about analyzing your consumers and the industry you are working in? Should you take immediate action or is there time to sit back and wait? Reevaluate what you are doing to win the trust of your clients and ensure you not only save the relationship with the old customers but also try your best to grow the audience.
5. Analyze Your Competitors. It’s not always bad to have healthy competitors. You can have a look at how they are doing during the pandemic and think of the ways to avoid their errors or improve your own venture and make it even more stable.
6. Turn Your Thoughts into the Business Finance Plan. Now that you’ve gained some relevant knowledge and analyzed what has happened and how to survive, you can transform everything into a perfect business plan to get out of current disruptions and concentrate on your targets.
The current unemployment rates hit the new high with over 17 million people filing jobless claims in recent weeks.
Mistakes to Avoid
If you are willing to remain financially afloat and save your venture from bankruptcy, ensure you avoid long-term debt, know your current issues and ways to solve them, have an emergency fund, analyze your industry and competitors. Taking action is significant while putting off urgent decisions may lead to undesirable consequences.
Business Finance Plan Template
Here are the questions answering which will help you establish the best future for your business and have a fast recovery after the pandemic:
#1. How Will Everything Change for Your Clients?
If your company offers value to the clients they will return to you even after the crisis ends. Although the current pandemic situation will definitely change our lives, it’s essential to understand these changes and adapt to them. Think about the best ways to deliver value to consumers, alter your products, or improve services.
#2. How Will Competition Change?
It’s no surprise that the changes will happen in every sphere and the competitors within your niche will also have to adapt to the new reality. Thus, make certain you research their resources, monetary position, and possible moves in the nearest future. This way you will know how to plan your own strategy to get out of the crisis smoother.
#3. Will You Have New Competitors?
Apart from learning about your present competitors, you should also take into account the possibility of getting new competitors while other entrepreneurs might choose to move to your industry. You may also decide to change niches or industries if your current company doesn’t bring much value to consumers anymore. There is nothing wrong with adapting to new conditions and pivoting.
#4. Where Will You Find New Staff?
COVID-19 pandemic has been one of the largest shakeups for employees as well. Even the most talented people have lost their jobs within the last several weeks. As a result, they will start looking for new positions once the epidemic situation stabilizes. Take advantage of it in case you need to rebuild the workforce.
#5. What Things Should You Let Go Of?
Adjusting to a new reality may take some time and effort. It’s better if you start figuring out what exactly you should stop doing or let go of before all the businesses reopen. Some things may have worked well before but won’t be helpful in new conditions. The earlier you find those things and eliminate them, the earlier you will boost your business capabilities and save finances.