No one ever thought of a pandemic like Covid-19 that not only shaken the world and its economy but also shut down operations all over the world. Since December 2019, countries are dealing with this virus but still they are not able to succeed over it.
Due to the lockdown situation, many small and medium businesses have been adversely affected and suffered huge losses resulting in closing down of operations in India.
If you are a business man adversely affected by Covid-19 and want to recover your business, you must have an organised recovery plan that helps you in returning to the normal or to retain in the new normal. We are providing you with certain tips that will help you in fighting with the adverse effects caused by Covid-19 and make your business up and running again after Covid-19.
Tips to recover your business after Covid-19
Estimate the financial damage you have suffered from Covid-19
The first and the foremost step to be taken under the recovery plan is to do the financial assessment of the damage your business has suffered during Covid-19. The simplest step to access your business position is to analyse and update your financial statements as well as compare them to the last year’s data to know how much ofyour business has been effected. You also need to take the following factors into considerations to recover fast –
- Cutting of advertising cost
- Laid-off employees or workers (If any)
- Trusted customers migration towards your competitors
Covering all these factors will give you a proper overview of the financial resources and help you recover fast from this pandemic.
Think about giving your business plan a second look
It is essentially required that you might give your business a second look due to the adverse effectsyour business need to face during a COVID-era. Every business needs some fine-tuning to grow and to attain its place in this new normal.
If you were dependent on foot traffic for your sales to happen, it’s time that you must expand by digitalising your business and engage new clients who are ordering from their homes and maintaining social distance. It will give rise to your business sales.
Check your business plan, modify it if needed, study the on-going trends and behaviour of the customers, review the practices adopted by your competitors and achieve your objectives.
You must include your business strengths and weaknesses while creating your new business plan. You need to overview all the factors that you were working on previously but now not going well as per the current scenario, just adjust them to remain in the competition.
You might need funds for recovering business after Covid-19
Funding is one of the most essential requirementsfor a business to get recover from the impact of Covid-19 and to stand like before. There are various financing options you can avail to recover from the losses and restart your business again. Certain relief measures have also been announced by the government to support small and medium businesses in India. Credit cards, business line of credit and short term business loans are some of the options you can avail through banks or lenders. You must review your personal and business credit scores and get ready with your financial statements before applying for any financing option.
Estimate your spending
It might be possible that much amount will be spent at the start of the recovery stage than you receive in the form of revenue. This situation can be handled only if you prioritise your expenses, eliminate the wastage of money and prepare a lean business operational budget.
Create a timeline to review your recovery
Everybody knows that business recovery takes time but if you will do everything at once, it might spoil your business plan. The first and the foremost goal of any business closed due to the pandemic isto accumulate or secure funds for the business. If you will have enough funds with you, you can rehire employees, fill your inventory again with the stocks and resume your business operations normally. To make this plan a success, you need to follow a step by step approach that helps you in making your future plan accordingly. It is recommended that you must track your progress on weekly basis to identify what’s working and what’s not. When things start becoming stable, start reviewing your progress on a monthly or quarterly basis.
Preparations in advance for any next big crisis
Don’t take anything granted for future. If you think that this pandemic is aonce-in-a-lifetime experience and will not impact your small business again, then you might be taking this very lightly. Future is uncertain and it might be possible that any unpredicted situation can hamper your business again. Therefore, preparations in advance to handle such situations can prove to be a beneficial step for small businesses. Creating a contingency fund to help and sustain business and cutting down unnecessary expenses can help you handle the future uncertainties in a more efficient and better way.
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