Steps for Businesses During COVID-19

steps for businesses during the covid-19 pandemic

Estimated reading time: 4 minutes

Millions of small business owners feel the financial stress of the coronavirus (COVID-19) pandemic nationwide. State and local government officials are shutting down big cities and small towns to help prevent coronavirus transmission, resulting in lost revenues for restaurants, retail shops, bars, nightclubs, and every other mom-and-pop business type.

When the economy grinds to a halt, small businesses are usually the first to go under if they have cash flow problems or are running on ultra-thin margins. The U.S. government has announced a massive $1 trillion stimulus package that includes $300 billion to help keep small businesses afloat and reduce layoffs during these challenging times, but that might not be enough. This Balboa Capital blog post discusses ways to weather the economic storm that has resulted from the coronavirus.

Go over your financials.

When examining your balance sheets and cash flow statements, pay close attention to inventory, accounts receivable, net income, sales trends, and fixed assets. In addition, look at the current economic climate, which seems to change daily as of late, and determine how it might affect your business.

For example, suppose your business relies on a few clients that have temporarily halted their operations due to the COVID-19 pandemic. In that case, you will have serious problems relating to cash flow before you reopen your business.

Keep your employees in the loop.

With the news about the coronavirus changing by the minute, your employees have a lot on their minds. They are concerned about their health and well-being and wonder if their jobs will be in jeopardy if the economy continues its descent. So, keep them informed at all times. Let them know about changes in business hours, policies for a potential work-at-home scenario, etc.

You can relay information and updates to your employees via email, video chat, or quick mandatory meetings. Doing so can help reduce workplace panic and minimize any anxiety that your employees are experiencing.

Establish COVID-19 cleaning protocols.

All of us have been inundated with news stories that explain the importance of keeping things clean and sanitized. Our nation’s leading medical professionals have repeatedly said that doing this can help prevent the spread of the coronavirus. If you already have a cleaning system in place for your kitchen, conference rooms, offices, and workstations, that is a great start.

However, now is the time to take your cleaning to the next level. You can stock up on hand sanitizers, anti-bacterial soap, spray disinfectants, and other virus-fighting products. Having your employees disinfect their workspaces every day is an absolute must. In addition, have them work as a team to wipe down door handles, computer keyboards, telephones, kitchen appliances, office printers, and other high-touch items.

Reconfigure office space.

According to most doctors and CDC experts, people should practice “social distancing” when grocery shopping, walking around places filled with people, and in other social situations. The recommendation is to remain at least six feet away from each other to decrease the chances of catching COVID-19.

Many businesses are following this lead, too. To give your employees some peace of mind, consider moving desks around so they are not sitting close together. If you do not have the office space to do this, you might want to send some of your employees home and allow them to work on a remote basis.

Apply for short-term funding.

Small businesses like yours are the anchor of the United States economy; they comprise 99.7% of all firms, employ 60 million workers, and generate 45% of economic activity. Therefore, we need to do everything to keep small businesses open.

A short-term business loan is a viable solution if COVID-19 has put a dent in your cash flow. You can use this type of loan to pay for just about every daily business expense, such as employee payroll, bills, and inventory.

Summary.

Balboa Capital hopes that you found these tips to be helpful. We remain optimistic that we will get through this, and we look forward to seeing Main Street USA buzzing again and fueling the economy.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.