It’s only been a few weeks of this coronavirus pandemic. But it feels like a decade since it started. Many business owners have been affected by official orders, have seen customers disappear and are fearful of their future. It’s time to start taking action and doing what we can to make it through this. To that end, this is our coronavirus survival plan for small businesses. We’re all in this together, so let’s support each other and get through this. If you need anything, we’re here for you. Call. Email. Comment. Let’s support each other.
The Situation: Small Business Readiness
According to a 2016 JP Morgan Chase study, most small businesses have about 27 days of working capital on hand, with restaurants on the low end at 17 days. In California, Governor Newsome issued a Stay at Home order on March 4, 2002. California also directed Bars, Restaurants, Gyms and, other businesses to close on March 16. That means cash is going to run out soon for many businesses if it hasn’t already.
Additionally, the Harvard Business School is reporting that 77% of business owners are “very worried” about the economic impact of coronavirus measures. They also report 54% expect a recession and 49% say demand is already down.
So, what can you do as a business owner to protect your business during this coronavirus economy?
7 Ways to Survive the Coronavirus Economy
- Tighten Your Finances: Do you remember the 2008/2009 crash? If you were around then, you went through the exercise of cutting expenses and reducing the cost of goods. It’s time to analyze your financials and make those decisions again. Negotiate contracts and refinance debt (defer payments). You will have to make hard payroll decisions. Think hard about the talent you have on your payroll and make changes accordingly. When you get through this, you’ll be better off with your superstars still on board. You might also be able to reduce your rent by downsizing and sending workers home to work.
- Apply for Aid:
- SBA: Apply for a disaster loan (download: https://disasterloan.sba.gov/ela), call the SBA at (800) 659-2955 or email email@example.com. Also, check out the SBA COVID19 Resources.
- California: https://business.ca.gov/coronavirus-2019/
- Your City: Check with your local city to see if they are offering assistance.
- Get a Loan: The Fed lowered interest rates which should help in securing a loan. Talk to your lender right away. Be sure to have your finances and business plan in order (call us now to get those completed).
- Stay on Top of Taxes: There is good news here. You now have until July 15, 2020 to FILE and PAY federal income taxes. That may free up some cash, it may not. Let’s review that together.
- COVID19 Policies: Put together your own policies to keep your employees, suppliers, and customers healthy. If you still have to interact with your customers face-to-face, they’ll notice that you’re doing what you can to keep them healthy — and they’ll notice if you aren’t.
- Sales and Marketing: Spend time analyzing your current efforts but also do some brainstorming. In times like these, a pivot, a new market, new products, digital or virtual version of existing products, and other changes can put your business on a path to a profitable future as well as short-term survival.
- Support the Community: Can you feed kids sent home from school? How else can your business contribute to helping your community get through this together? Charity and giving may not seem like an easy financial decision, but your good turn will come back to help you in the end. And you may end up with a fiercely loyal customer base once this blows over.
Reach Out for Help
ASCEND Business Advisory is here for you. Reach out for help. We’ll help with taxes, business plans, accounting, and general support to help you get your business get through this new coronavirus economy. Call us at 888 297-3321 or contact us to get the conversation started.