The economic devastation caused by the COVID-19 crisis has been unprecedented. Already, economic analysts around the world are comparing the extent of this destruction to past financial disasters.
Small businesses were hit particularly the most because these organizations thrive through day-to-day sales and operations. When global retailing and trade came to a standstill owing to countrywide lockdowns, small businesses could see impending doom.
Every crisis brings with a range of silver-lining and this pandemic was no different. Small businesses have braved the storm, as most countries are now reporting that they have contained the rampant spread of the virus. This means that in a matter of months, the state of the economy and operations will start returning to normalcy. This period will be crucial for small businesses as they need to define a recovery trajectory to ensure that they get up and running in no time.
Compute The Financial Damage
The first step towards recovery is to assess the impact so that an effective damage control policy can be initiated. To start assessing the financial damage, you need update your financial statements to get a sense of the profit, revenue, and loss numbers. This analysis will help you compare this year’s numbers with the previous one and then evaluate the extent of the damage. Furthermore, you also need to evaluate other factors that might have contributed to financial loss indirectly, such as losing customers to competitors, a decline in client acquisition, and lead generation.
Revamp Your Organisational Goals and Business Plan
Your pre-COVID 19 business strategy needs to be tossed out. Businesses can only thrive if they have a mercurial business plan, that adjusts according to consumer behavior and market sentiment. The importance of core values in revamping business strategy is profound, as you need to rethink your workplace culture, and instill a different approach towards success in a recovery market, post the pandemic.
For instance, if you have a small retailing business, and previously relied on traditional marketing strategies such as print and broadcast advertisements, then you need to formulate a shift towards modern digital marketing means, since the vast majority of people now shop online, and look for products on the internet.
Prioritise Your Spending
You need to acknowledge that before you start to earn, you will have to rev up spending. This can only happen if you prioritize your spending to areas that can stirrup a buzz around your business and improve your sales. For example, you may need to spend on fresh human resource that you laid off during the pandemic, or increase marketing budgets to improve client-acquisition channels.
Your recovery program is incomplete without an effective spending plan. The ultimate goal of this spending plan should be to ensure that any financial inefficiency or luxury that you could afford before the COVID-19 crisis is rooted out, and more pressing priorities are established.
Conclusions: Work On A Timeline
It is important to take a breather before you deploy a business rebuilding strategy. One thing is for sure, you cannot do everything at the same time, so it is vital to give your business realistic goals to achieve. Only you can decide on the most important actions, and establish a timeline of other actions that will follow.