Steps for Small Businesses to Resume Post COVID-19 Lockdown
- A Texas-based hairdresser installed glass screens to separate customers.
- Makers at the Gare du Nord in Paris instruct commuters to maintain 2 meters distance while waiting.
- A dealership store of Mercedez cars in Brussels is using wheels to ensure social distancing
Just about 4 months ago we heard of a mysterious virus taking over with symptoms like pneumonia. And now, almost every single human is hit by it, directly or indirectly. Bringing the world to a standstill, more than 4 billion people are in some kind of lockdown today.
But, the situation is getting back to normal, lockdown is easing and the world is getting to rejoin its work. Though, with the changing behavior, new normal lifestyle and behavior are being witnessed globally.
The hard-hit small businesses are trying to resume their work and income during these tough times. But, the correct path being unclear is causing a lot of hindrance in the process.
Let’s discuss in this blog about the right path to resume your services just like many other players in the market, who are trying to play consciously.
1. Open Your Notes of Observation from Lockdown.
While your business was shut during the lockdown, you must have had time to observe the changing customer behavior, needs, trends, your business, employees, and the new landscape your business is about to enter.
- What were your observations about your business?
- What did you learn about your employees?
- What did you observe about your consumers?
- How is your industry performing?
- What measures are your competitors taking to cope up?
Take learning from your observations and find measures to improve your processes when you reopen. This might be your time to completely revamp your business model as per changing business needs. Utilize this time to renovate your business and evolve with more relevancy with the current times.
2. Break Down Learning into Small Focused Plans.
Once you’ve recorded all your learning and have notes in place, it now becomes a point to match them up specifically with your business needs.
Remember, even in the same industry, each business runs uniquely.
Breakdown your plan into more focused areas of improvement considering the rapidly changing processes. While these areas need to be specific to your business, here is a list of some you can start with:
- Customers (Learn about customers changing behavior towards your products)
- Regulatory changes (Do not miss to follow up regulatory changes from the Government)
- Location (considering subtracting extra rent, if possible)
- Business finances (Consider AR & AP sheets to make forecast)
- Investment considerations (you can postpone some, if not urgent)
- Supply chain (With the entire world at a halt, review about obstacles in your industry)
- Employees (Consider their health and well being too)
3. Prioritize Cash Flow While Developing Plans to Reopen.
After a major sudden halt when you’re planning to reopen, considering cash flow and finances should be your priority. Ask your self some key questions about your current financial status to plan a go-ahead.
Determine the financial assets you have, their liquidity, and the total sum of cash you have in your bank account to support the reopening of your business.
Calculate the exact amount of money required to initiate reopening. Then break it into smaller funds for different line items to analyze the exact amount of funds required to fully open your business. If the cash seems less, do not hassle. Simply cut the extra expenses for now and go ahead. Gradually fund other expenses when your sales come back on track.
In the meanwhile. You can ask some questions to yourself to guide you through the processes:
- The price difference in raw material in the current situation.
- How should I document my expenses now for more clear analysis?
- How different will be my business model and revenue based on that?
- What processes around payments and cash flow should I change?
Considering the processes against payments and cash flow shall play a key role in deciding your sales, today. With the COVID-19 graph rising, every other item is scrutinized under the carrier of the virus. This is one of the reasons why the latest reports by the Global Data predict a downfall to 4.5% of cash acceptance in the market between 2019–2023.
To curb this issue, change the way you accept payments. Offer more gateways and platforms for payment acceptance and invoicing too. Introduce an online invoicing software to manage invoicing, payments, expense management, reporting, and tracking the flow of the cash precisely. Mind you, you need to be precise more than ever now.
4. Arrange Reopening by Assembling a Team Together.
You don’t have to reopen and arrange the setup alone. Assemble your team members back together and handle them your plan to brainstorm together and focus on activities of reopening. Hold them accountable to carry out the plan successfully. Meanwhile, hold virtual conferences to know about the progress of the tasks regularly.
As you go ahead, note that many ongoing patterns will change, keep on following updates from your government and local authorities to reopen with utmost relevant features. Keep your business and your team agile.
Also Read: Top 10 Expense Management Software- Final Verdict
Lastly,
During this period the sales and expenses have shot poles apart, south and north, drastically. Businesses are fighting each day to sustain or make a comeback. Balance sheets for many business houses in the past few months have recorded ZERO accounts receivables, but constant payable. This needs to be balanced out. The liabilities need to be paid with the profits. Therefore, unlocking your business in the most planned, analyzed, and organized manner is important.
Here I have discussed with you the right plan to reopen your business that will never fail. Increase visibility in your cash flow and workflow to make your business an ever profit-generating business house despite the COVID19 pandemic.
Also, do not forget to be more responsible and proactive towards eradicating the chances of spreading the Coronavirus pandemic. Stay safe first, and reopen then.
