It’s no secret that the COVID-19 pandemic will have a lasting impact on business operations. While the US government has done much to protect business owners and their families, it hasn’t been easy for many startups to bounce back. But all isn’t lost; there are still options available.
The Impacts of the COVID-19 Pandemic on Business Operations
In 2020, the United States Census Bureau expanded its Annual Capital Expenditures Survey to include questions about COVID-19s impact on American business operations. It found that over 58% of businesses in every industry requested financial assistance in 2020.
Although the bulk of this assistance went towards payroll, 36% to 62% of businesses in every industry reduced their employees’ hours, benefits, or pay. Less than 10% of companies in every sector canceled, postponed, or decreased budgeted capital expenditures by the end of 2020.
How Businesses Can Bounce Back After COVID-19
Many of the protections afforded to businesses during the pandemic will be phased out shortly, which understandingly causes anxiety. But you can turn things around by doing the following.
Understanding Employee Retention Tax Credit
The Employee Retention Tax Credit (ERTC) was created to keep employees on the payroll. If you’re a small to medium-sized business, you can receive up to 50% of qualified wages from March to December. Paycheck Protection Program loan borrowers can still get the ERTC.
Employers can get up to $26,000 per employee, so if you need assistance, use Form 941-X to apply. Small to medium-sized businesses can retroactively apply for ERTC in 2022.
Move to Fully Remote or Hybrid Workspaces
Not every business can take advantage of remote working or a hybrid office, but those can. It’s one of the best ways to grow your business without spending much money. You’re reducing your overhead because you don’t have to pay to run a gigantic office space.
Studies show that remote workers are more productive than their office counterparts, so you’re getting more done for less. Remote work is also more attractive to high-quality employees.
Reconsider Your Brand’s Positioning in the Market
The pandemic changed how consumers shop. Your customers are more likely to look up brands before making a purchase, and hybrid shopping (researching a product online before buying it at the store) is the norm. Social media drives a lot of your customer’s purchasing decisions.
If you don’t have any reviews, an online store that compliments your brick-and-mortar operation, or a social media presence, you’ll need to immediately put these essential tasks on your to-do list.
Upskill Current Staff (Instead of Hiring Out of Office)
Turnover is costly. It’s so expensive that giving your current employees a 15% to 200% raise and the chance to learn a new skill is cheaper. It just doesn’t seem that way because onboarding costs build up over time, while time investments are hard to track.
If it’s too difficult to hire staff in your current financial situation, look up the necessary skills you need to generate growth and ask a few staff members to participate in a training program.
Come Back Slowly and Build Up Your Savings
Every small business is in the same position. Your competition is likely struggling to stay afloat, which seems the perfect time to beat them to the punch. Attempting to grow too soon will negatively impact your cash flow and your employees’ physical and mental health.
If you plan to ramp up production, go slow. Develop a three-month plan that outlines all the steps you’ll take to reach your goal. Ease staff back into the office if they can’t work remotely.Clearone Advantage, Credit Associates, Credit 9, Americor Funding, Tripoint Lending, Lendvia, Simple Path Financial, New Start Capital, Point Break Financial, Sagemore Financial, Money Ladder, Advantage Preferred Financial, LoanQuo, Apply.Credit9, Mobilend