I recently read a freaky news story.
It is about the doomsday apocalypse for small and medium-sized businesses. COVID-19 shut down hundreds of thousands of these companies for good, and it’s just the beginning.
Closing stores left and right became the painful new reality. There are so many big-name brands and businesses dying that the media stopped making individual news pieces. Day by day, they just summarize how many companies fell down the night before. And as dead companies kept piling up, so do hungry bellies.
Initially, my friends in the tech market thought the pandemic wouldn’t affect them. After all, this virus infects people, not computers, so they say. But then, a few months into the global lockdown and I see them shaking their heads, laying off people, and downsizing their business.
And while the majority of us hunker down and wait for the pandemic to pass, I got bad and good news.
Bad news: Things will never go back to the way it was before. No wonder they call the post-pandemic the new normal.
Good news: If you know what to do, you might get a good chance of saving your business.
Here’s How Your Business Can Survive the Pandemic
Startups don’t die due to the virus. They die due to a lack of cash. Its either you increase the amounts of funds coming in or prevent more of it from going out. And if your business doesn’t survive these next months, there’s no Plan B.
All the strategies below are for your survival. There’s no use talking about futuristic tech at this time. None of these matters if you don’t survive.
1. Seek Government Assistance
If you have less than three months of cash on hand to deal with economic shocks, then you need help. But the problem with most businesses is that they aren’t sure if they will qualify for government aid. Or if their loans will be forgiven. So ask around. Seek help while you still can. Do it while you’re still afloat. It will be difficult to process this once you are already drowning in bills.
2. Delay Expenses
Be transparent to your landlord. Delay paying your rent if possible. Your state might put measures in place to prevent landlords from evicting small businesses. It never hurts to ask.
3. Contact Your Credit Company
Your credit card company might have a program in place to allow deferred payments. Don’t wait till you’re past your due date to take action. Check your options. You might be able to freeze your interest rate or perhaps waive late payment fees.
4. Reduce Your Car Insurance Rate
Now’s the best time to lower your car insurance, as most of your people were currently working at home. You can reduce your insurance payment by lowering your reported mileage.
5. Cut Down Your Subscription Services
Your business might have a lot of apps, mobile phones, software, or services subscription. Review and stop your subscription before they bill you another month.
6. Adjust Your Business Model
Think creatively and look for ways on how you can pivot your business model from offline to online. Ask around to see who needs your services beyond your typical customer base. Switch gears as necessary.
Companies with the ability to adapt to the times stand to gain in this pandemic.