Frank Abah

COVID-19: How Small Business Owners Can Pull Through the Pandemic Small businesses are undoubtedly the hardest hit by the coronavirus pandemic that has swept across the globe because most of them — if not all — cannot weather such a huge storm; not to talk of how they were practically caught flatfooted. Bigger businesses stand a better chance to pull through this malaise, however, not the smaller ones who tend to live only with a few months of cash flow. While big businesses like Amazon and Walmart recorded 100 percent and 80 percent increase in their profits respectively, statistics have shown that revenues for small businesses crashed by 30%; but that’s not all, 21% of these small businesses are said to have completely closed down. These unprecedented times have left so many small business owners and their employees in a lurch, the future for them and their businesses looks bleak; some have had their only source of income completely decimated, yet the end to the pandemic is not in sight. Though there’s no exact single answer to how small business owners can easily survive through a pandemic of such magnitude, however, they are a few suggestions on how to manage the crises and can come out smelling roses. (1)Don’t Panic It’s pretty hard for any business owner to not panic when their cash flow is fast running out or even completely evaporated, and the nearest future still looks unclear; but here’s the hard truth: panic is never a strategy! You have to try and stay calm, but more importantly, you need to take good care of yourself, stay healthy, and avoid depression. This will help you a great deal to maintain a healthy mind too, which is very important if you must make the right decisions. Seek out emotional or psychological support if you have to because people hardly come up with logical solutions to any problem when the balance of their mind is disturbed. (2) Draw a Six-month Financial Plan Those who run small businesses have key recurrent expenditures that they usually take care of monthly and can easily forecast; such as office rent, employee salaries, utility bills, etc. Try and discuss with anyone whom you have an obligation to financially, find out the options you have to spread out the cost. It’s most likely; they already have options that might appeal to you, and then see how you work things out and reach a compromise with them. Of course, the situation is not a case in isolation, so it is expected of them to be understanding. Make sure you prioritize your expenditures and take care of only pressing needs that can’t be put off for a longer time, and limit unnecessary personal spending that might further put you in financial duress. (3) Key into Opportunities Made Available by the Government and Financial Institutions Around the world, different governments are providing succour and financial support, especially to small businesses to help them cushion the effect of the COVID-19 pandemic. Take out time and make research on available options to you and seize the opportunity to get that financial support your business needs to stay afloat. (Please note that this article contains affiliate links that will help the writer earn some commission when the services are used and its strictly for businesses in the US) Some commercial banks and other financial institutions too are also offering different forms of business loans with soft landing; a good example is the Covid-19 Emergency Loan offered through the agency of David Allen Capital (DAC). This loan offer allows small business owners to secure up to $150, 000 within a few business days, with 30 years repayment schedule, and they don’t have to pay back within the first 12 months. It has a very low-interest rate too; however, this loan is for a limited time! Meanwhile, for business owners who may have bigger financial needs, they are two other options — Business Capital and Equipment Leasing & Financing both of which offer amounts ranging from $10,000 to $1million, obtainable within 3 to 5 business days without collateral (the US only). (4) Search For Opportunities A health crisis situation like the COVID-19 pandemic does not only stifle some business activities but also creates new ones. It would make strategic sense for small business owners to see how they can fit in and make the best out of the ugly situation. This is not to say that business owners should capitalize on a pandemic to profiteer or anything within that approximation, but, they can navigate within the confines of business ethics. They may need to upskill their staff to achieve this goal. In the long run, it will not only help them raise the much-needed funds but also keep their businesses afloat throughout the intervening period of the pandemic.