How To Safeguard Your Small Business During the COVID-19 Pandemic
As the coronavirus pandemic continues to affect small businesses post-lockdown, many small business owners might wonder what can be done to safeguard the future of their business. With new regulations for reopening during the COVID-19 pandemic (and the recent protests), you might question whether it is enough to continue the status quo. If you’ve come to determine that business cannot continue as usual, then this article is for you. Here, we list six ways you can safeguard your small business during difficult times.
1. Business Strategy
When the economy is not doing well, it is a good time to review your current and past business strategies. See how your business has grown, why you made the changes you made, and whether you need to make additional changes. Try to predict what the future will look like as a result of the pandemic, and simulate your business model–does it work? Is your business profitable? Or maybe you need to make adjustments.
Economic downturn can change the outlook of supply and demand, inventory, and prices. Make sure you leave nothing out of your review.
2. Regulations and Compliance
As conditions change, be sure to remain to up-to-date on business regulations, employment regulations, and any other regulations that require compliance. This is also a good time to review tax compliance, and how you can minimize your end-of-your business taxes.
3. Contractual Obligations
If you have obligations to vendors, suppliers, or clients, ensure that you are able to meet your contractual obligations. Try to negotiate whenever possible if the reason you’re unable to meet requirements is due to circumstances out of your control, e.g. pandemic. If you need assistance with negotiations, feel free to consult a qualified business attorney.
In addition, it’s a good time to evaluate the relationships you have with vendors, suppliers, or clients, and prioritize those of more importance. Add value to the important relationships by communicating more with them and finding out how they are also affected by current circumstances. You might discover new ways to serve your clients through these discussions.
4. Business Insurance
If you have a current policy, review the relevant insurance policies regarding business interruption and event cancellation. If you do not have insurance policies for your business, this is a good time to consider adding a good insurance policy to your business arsenal.
5. Commercial Real Estate
If you have a mortgage, or commercial lease, identify and review updated policies. Remember to ask about repercussions on non-payment of rent due to impact on the business.
6. Employment
If your business has employees, be sure to remain up-to-date on current employment policies and benefits. Review your employee handbooks for policies on sick and family leave to ensure compliance with local regulations.
While we try to suggest what we can in our articles, we realize that every small business is different. We welcome you to contact our office to discuss your business’ unique needs during these challenging times.