For close to a year now, small business owners nationwide have been in the fight of their lives. The global pandemic and economic crisis presented many challenges that resulted in many establishments closing their doors for good. As millions more hang on by a thread, business execs contemplate their next move. Though not all decisions going forward will be easy, here are some suggestions worth considering.
Small businesses help to stimulate the local economy. Essentially, if they shut down, that’s thousands, if not millions of dollars lost. Not to mention thousands of people become unemployed. As such, the federal and state governments have implemented financial assistance programs to help entrepreneurs in need. If you qualify, you could receive funds to pay for rent, utilities, inventory, and payroll amid the pandemic.
Owners of brick-and-mortar businesses seem to have the most financial strain amid the pandemic. With less foot traffic and fewer sales, keeping the lights on is an everyday struggle. Rather than waiting for expenses to get out of hand, entrepreneurs are encouraged to transition to an eCommerce platform. It eliminates the overhead costs of running a physical store and allows you to tap into a broader audience, generating more sales.
Share Commercial Space
Not all businesses are successful when selling exclusively online. If that’s the case, there are other options to reduce the costs of owning or leasing commercial space. One idea might be to sublet the space to another entrepreneur. Though it reduces your workspace, it also lowers your out of pocket expenses. Not to mention, your new tenant could generate more traffic for you to increase your opportunities to make sales.
Take A Paycut
If you’ve already evaluated your company budget and crunched the numbers to no avail, perhaps it’s time to consider a pay cut. While this move would require you to tighten the financial reigns at home, it could be the economic boost you need to get things back on track. You could use these funds to pay your employees or cover other expenses until you’re generating enough revenue to increase your salary.
Bring On A Partner
Do you know someone inside or outside the organization that’s interested in taking on more responsibility? If so, perhaps you should consider making them a partner. Yes, having a business partner does involve a lot of negotiating, and you’ll be required to split the profits, but there is a bright side. Your partner will come to the table with their own capital and resources, which you can use to advance your business further.
Reevaluate Work Schedules
While no business owner wants to decide that will impact their employees, it may be necessary amid a pandemic. Instead of letting go of valuable team members, perhaps you just need to reevaluate work schedules. Eliminate overtime and consider switching some employees from full-time to part-time or contract positions. You’d be surprised how many people would prefer to shorten their workweek than find themselves in the unemployment line.
Sell Your Business
Finally, entrepreneurs who are struggling amid the pandemic might want to think about selling their business. Though a hard pill to swallow, selling to an agency that wants to buy Amazon businesses or other establishments is often better than throwing in the towel. It would provide you with a large sum of cash you could use to cover personal expenses until you figure out your next move. It’s also a lot better than draining your finances and having to file bankruptcy.
These are, without a doubt, some of the most challenging times in history. As it could take months or even years for things to improve, business owners must devise a plan to weather the storm. Though these decisions may not be your first option, sometimes it’s the best thing to do for you, your employees, your business, your family, and your community. Before making a selection like those described above, ensure that you’ve done your due diligence to determine which route is best for you.