The COVID-19 outbreak has had a significant impact on everyone’s life. While a lot of people are working from home and social distancing, others have been furloughed or laid off. While it has impacted the lives of individuals, it has also had a negative impact on the operations of businesses of all sizes. While operating in the world will be more challenging for the time being, there are several tips that can be followed that can help companies manage themselves during the COVID-19 disruption.
One way that a company can continue to operate during and after the outbreak is by pivoting their operations. All businesses are impacted by the outbreak in some capacity. For certain businesses, such as restaurants, it can also mean having to close entirely as customers are no longer allowed to come in. Fortunately, there are ways that you can continue to operate during these challenging times. For example, a restaurant could choose to open a more substantial delivery or pick-up operation. This can help them continue to serve customers and earn some revenue during the time being.
Help with Tariffs
Depending on whether or not you import and export products, you could end up spending a lot of money on tariffs. This is especially the case if you have a lot of work done with China. Today, there are a variety of options for reducing your tariffs or even having them refunded. If you are going to receive a refund, it could take some time to process. Fortunately, you can get an advance on a pending China tariff refund for business, which could help to improve your cash flow position.
Negotiate with Vendors
There is no doubt that a business will see a decline in revenue during this time. Due to this, it is important that all businesses are honest with their vendors. Some vendors to contact can include your landlord, bank, inventory suppliers, and insurance companies. All of these vendors are aware of the struggles that businesses are having. Due to this, it’s important that you reach out to the vendors and plead your case for relief. You could receive a reduction in charges or extended repayment terms. It is important to identify how you are going to remain solvent going forward.
Another option to manage your business during the outbreak is to seek relief from various governmental programs. Today, there are many different relief plans available that can provide more cash flow to a small business owner. One is a payroll protection program in which you will receive a forgivable loan equal to about 2.5 times your monthly payroll. This will help to give you the cash flow that you need to keep your business moving and open.
Finally, a business needs to take this time to evaluate their costs. Most organizations are going to need to cut back in some way. This can be by reducing hours of staff, getting rid of some perks, or being more efficient. Not only will this help a business to stay afloat, but these sizable cost savings could be carried forward to make a business more profitable going forward.
Managing the coronavirus outbreak is tough on any business. Those that are not organized and efficient during this time could struggle. Fortunately, there are a variety of things that a business can do to manage the disruption that is occurring during this disruption of the economy.