As the Covid pandemic continues to impact economies worldwide, we believe the business recovery will continue to be challenging, especially for those small businesses that have not realized that risk management is a crucial business strategy.
While there are short-term pressures during reopening, there is also an opportunity to reimagine business models for the long term. Covid has affected the norms of business across every industry and geography. Due to many monetary constraints, new ways of going to work and shifts in customer behavior have radically transformed how businesses operate.
The only thing that’s certain about the recovery is that there’s still considerable uncertainty about what form and how long it will take. Below we have put together business resilience tips to help get your business back on track.
Transform and Adapt, Small Business
Before the pandemic, businesses were facing pressures to act more responsibly, and Covid only accelerated that. Operating a successful business requires more than just business as usual. This new way of business is a balancing act between transitioning safely into the new working world.
With such a significant economic and social impact, radical changes in how we operate are necessary. This new way is no longer just a growth economy focus but a value-based economy that prioritizes long-term value and resilience and the needs of multiple stakeholders over short-term growth. Flexibility has always been a business advantage, but it will now be critical to survival, so to succeed as a small business, you need to transform with the times and adapt as best as you can.
It’s Time To Understand Your Customer
The behavior and decisions of consumers are what keep the business world ticking. You must understand your audience, where they are, and why they should choose you over your competitor (hard facts, over here!). The pandemic has dealt a massive, permanent blow to the way consumers interact with businesses. If you want to survive post-Covid, you need to get in front of your audience and delight them. Customers want to see the heart behind a brand – so, be authentic.
Say Goodbye To The Old Workplace
To continue being successful post-pandemic, you will need to say goodbye to the old way of thinking. If you are lucky enough to continue remote working practices, you are already ahead of the curve. However, we understand that returning to work is vital to remain financially viable. Suppose that is the case, and you cannot offer a remote setting. In that case, you will need to prioritize cooperation, communication, and accountability and supplement with cutting-edge technologies and working processes, including collaboration platforms.
Small Business Forecasting is Essential
Making smart financial decisions post-Covid is crucial to running a successful business. Before the pandemic, the U.S. Bureau of Labor Statistics stipulated that about 20% of U.S. small businesses fail within the first year. This is a daunting number; however, as you navigate this new normal, having effective forecasting and scenario planning strategies can help you not become another statistic. The two methods of forecasting are:
Qualitative forecasting is based on the opinion and judgment of consumers and experts. This method is helpful if you have insufficient historical data to make statistically relevant conclusions.
Quantitative forecasting is applicable when there is accurate past data available to predict the probability of future events. This method pulls patterns from the data that allow for more probable outcomes.
Identify Financing Options
In the wake of the 2008 financial crisis, many companies had to withdraw from investments that did not serve their company. The same goes for now. We strongly suggest you reduce debt through disinvestment. This means limiting the number of vendors you currently have or paying vendors back a lot faster than raking up bills.
How can you do this if you just don’t have the excess funds? Alternative financing. You can secure business financing fast and securely to pay off debts through alternative financing, limiting the number of accounts in the portfolio and preventing credit score defaults.
Our short-term business financing can help you with debts and operational costs. All you need is to have been in business for six months. Have a monthly revenue of $15 000, and be based in the U.S. to get financed in less than 24-hours of applying. We want to help you beat the Covid business crisis, so apply for funding today!