COVID-19 and Its Impact on Small Businesses
COVID-19 has had a disastrous impact on the revenue of small businesses across the country. 7.5 million small businesses will be at risk of permanent closure if the pandemic continues to limit consumer spending as it has been. Common issues small businesses may encounter are:
- Organise your capital access – Limited consumer spending will put a strain on a business’s financial capabilities to make payroll, maintain inventory, and respond to the fluctuating market uncertainties affected by supply and demand. Make sure to explore your capital access options so you’re prepared when the time comes.
- Increased pressure on employees – Not only are all of your customers affected by the lockdown but so are your employees. Increasing concerns of protection from their place of work, job security, and health and safety, will all affect your employees’ ability to perform their job responsibilities while at work in a pandemic.
- Clear communication with customers – In times of uncertainty, customers value transparency between the brands they buy from. It’s important to communicate clearly with your customers about the measures you’re managing to ensure their safety and the wellbeing of your employees.
Financial Resources for Small Business During the Pandemic
- Research support funds: Nonprofits like Opportunity Fund supports small businesses that are financially struggling with the negative effects from the crisis, for example having the fear of missing on a loan payment. Small businesses can contact this assistance service at 877-629-2709 or [email protected].
- Information webinars: Entrepreneurs and starting businesses can keep informed with helpful resources. Make sure to have a look online within small business communities, community partner resources, or on social media so you can gain best in practices during the pandemic and widen your network.
- Financial coaching: Starting your own businesses isn’t an easy feat. What’s great is that there are so many people in businesses who were in your shoes once, and have been able to build their business to the success it is this day. Make sure to keep an eye out for
Tips on Saving Money for Your Small Business
- Shop smarter on your utilities: Although you can’t dodge paying your utility bill, you can save money for your small business by comparing shopping of electricity providers in your area to make sure you’re getting the most competitive rate.
- Explore low-cost advertising: With the rise of the digital age, businesses are able to cut the cost of traditional advertising by utilizing social media and other internet marketing. If you’re not a fan of digital, public relations is also a much cheaper and more effective form of advertising in comparison to traditional forms of advertising.
- Find sponsors to support your activities: The initial pay-out for business activities like events may be a difficult set back for small businesses, especially if the rewards aren’t as certain to be returned. But when done right, events can draw in customers old and new. Having a sponsor who can help alleviate the expenses of events in exchange for advertising can be a good trade.
- Negotiate with your vendors: Ultimately it’s important to have a good relationship with your vendors. In reality, negotiating with your vendors may even enhance your relationship than break it if done correctly. This difficult economic circumstance from the pandemic is affecting businesses alike, and your vendors aren’t exempt to that. Many vendors are often willing to negotiate lower prices rather than to lose a regular customer.
Conclusion – The pandemic has pushed financial constraints on many small businesses, like your own, who need practical costs to lower their overheads, and reach their target market to build their business. Make sure to consider the tips mentioned above to help you keep being adaptable and resilient, which are essential when becoming a successful entrepreneur.