The coronavirus pandemic has affected many businesses. While some have been forced to close due to lockdown regulations, others have been able to stay open, but may still be suffering from a decrease in customers. Already, some businesses have had to fold entirely. To stop your business being a casualty of Covid-19, here are a few tips.
Is it sensible to continue operation?
Even if your business has been allowed to continue trading, it may not be a sensible to stay open. You may have noticed a drop in customers, resulting in a loss of income – this may not be enough to cover overheads. Suppliers may no longer be in operation, which could limit you as to what you can provide for customers. There are then the health risks to consider – what happens if employees or customers get sick and you are responsible?
Closing your business could mean that you no longer have to pay many of the running costs. Meanwhile, you may be eligible for government support. You also won’t be putting customers or employees at risk.
Of course, if you’re able to keep up steady business and put in place safety measures, there may be no reason to close. A lot of retail companies have poured more energy into eCommerce – you can learn how eCommerce businesses stay afloat here. Restaurants have meanwhile been finding ways to serve takeaway food. As for offices, many of them have found ways of allowing employees to work from home.
Are there costs you can eliminate?
To help compensate for the potential loss in income, you could consider finding ways of reducing certain business expenses. You may be able to talk to creditors and providers and temporarily freeze or lower bill payments. There may also be software subscriptions that you can cancel.
The pandemic could be a chance to streamline your business and get rid of any unnecessary processes or equipment that is more money than it is worth. Financial advisors may be able to help you with this.
Can you take the time to improve your business?
If you’ve ceased trading or business is slow, you may find yourself with extra time to improve your business. This could help to make it more profitable once the pandemic is over.
Now could be the time to rebrand your business and start planning new marketing strategies – you could design a new website and start getting involved in social media. You could change the legal structure of your business and look into trademarks. Now may even the time to upgrade your equipment and technology so that your business is more efficient.
Such improvements may involve investing money that you don’t have – be careful of taking out loans and getting yourself into lots of debt.
