Forced to halt operations, remove employees, product depreciation, and a whole lot more of reductions and restrictions are being forced upon big companies world wide as COVID-19 becomes a major threat to our generation. So what more for small businesses with smaller reach and revenue? What could happen to them? When the United States became the epicenter of the virus last March, nearly one-third (31 percent) of small businesses in the U.S. were hit and are currently not operational. Even though the younger generations are more likely to side-hustle this does not remove the fact that it is harder for everyone to earn money in this crisis.
If you are one of those small businesses affected or are interested in starting a business then this article will help you get more knowledge on what it takes to be a small business owner in the middle of the pandemic.
- Insufficient Funds– contrary to giant companies, small businesses operate with a considerably limited fund. The lack of adequate cash flow greatly affects the service provided to customers. Hence, small businesses are prone to shutting down whenever clients fail to pay on time. Thus, managing income wisely is critical.
- Maintaining legal services of ever-changing government legislation– aside from the pandemic, small businesses are more likely forced to keep up with legislation. As the government guidelines are in a constant state of fluidity, small businesses need to be fully aware of how to adapt or face closure.
- Maintaining the customer’s trust- in a time of uncertainty, individuals tend to be more careful, like accepting couriers and disinfecting products with alcohol. In these troubled times, small businesses need to work harder to strengthen their reputation.
- Looking after staff – with reductions in operations, reduced sales and reduced income, how do we look after the staff that best look after the business? Can we ask staff to reduce their salaries, to take reduced benefits and to support the business, instead of letting them go? Can small businesses look for a middle ground where the business and the staff are both supported equally?