As we begin to look toward the “new normal” after COVID-19, a lot of small business owners are wondering about what’s next.
The pandemic has left its mark on the business environment, and coronavirus will likely impact the way small businesses operate for the unforeseeable future.
Right now, restaurants are looking at new ways to sanitize, retailers previously reluctant to join e-commerce platforms are exploring online options, and service businesses are turning to new technologies to continue to add value for new and existing customers.
Small businesses are built on innovative thinking and “creating a better mousetrap,” and small business owners are a resilient group. But bouncing back from the impact of COVID-19 will be just as challenging as surviving the first wave of the pandemic.
3 Questions for the Future
In discussing the future with small business owners, some common concerns begin to arise. Let’s look at three of them.
How can my business build a cash reserve for the next unplanned event?
Small businesses need sufficient working capital to survive. A good rule-of-thumb is for businesses to keep 3-4 months of operating expenses on hand at all times.
This type of cushion allows business owners to become more strategic in decision making when times are uncertain. During the onset of coronavirus, small business owners with no reserves became panicked and made quick decisions due to a lack of working capital.
Make a plan to conserve your cash. You may have depleted your reserves, but don’t go in the hole. Make decisions based on what is, not what might be.
How should my relationship with my lender evolve?
Some small business owners have turned to their lending partners for assistance during the COVID-19 crisis.
Local banks are often able to be quick and nimble to help, but they cannot overreact. They are businesses, too, and must make strategic decisions themselves.
Get to know a lender before you need a lender. Ongoing communication with your banker is important in good times and lean times.
As we move out of the initial pandemic shock, connect with your bank to discuss the challenges your business is facing. Inquire about bank products or services that may help you succeed in the future.
My business lost human resource talent during COVID-19. How can I recruit them back and maintain the talent I still have?
This is a challenge that most businesses are overlooking. Unemployment rates have risen, but competition for talented employees may heat up.
Look at your business to determine what sets you apart from your competition. Why would someone want to work for you instead of the business next door?
This is a time to begin marketing your internal culture. Think beyond the compensation levels. Today, employees are looking for more than a paycheck.
Time to Innovate
The coronavirus pandemic forced small business owners to look for new ways to do old tasks.
There will be a new “normal,” and those that embrace the changes will flourish. This is a time for new business plans and innovation, along with continued positivity and partnerships among the small business community.
You have support and help to guide you.
At the Arkansas Small Business and Technology Development Center, our team is standing by. We are here to guide you through the next phase of your business. Call on us!