Lots of small businesses across the country have closed their doors this year because of sudden drops in revenue or difficulties with meeting social distancing measures. Your business has managed to weather the storm, but you can’t deny that you’re standing on shaky ground. To help your operation recover from this situation, follow these crucial tips as soon as possible.
1. Get government aid
The federal government has set up emergency funding programs for businesses that are hurting because of COVID-19. If you’re in this position, you should look into solutions like the emergency wage subsidy program. Eligible businesses can receive a subsidy for up to 75% of employee wages for a maximum of 24 weeks. With this extra support, you could guarantee that the majority of your staff stays onboard.
Here are some other government aid options that could be useful:
- The Enhanced Work-Sharing Program
- Emergency Commercial Rent Assistance
- Credit for operational expenses
- Term loans for operational expenses
Taking out a loan is a fast way to bulk up cash flow, but it can hurt you later on when it comes to repayment. Be cautious when you’re budgeting your business expenses. You’re going to want to have funds set aside to tackle the outstanding debt as best as you can. Otherwise, you could stumble into more financial trouble.
2. Embrace work alternatives
Adapting your work methods can help your operation survive these strange circumstances. For instance, if you want to save money and abide by social distancing rules until officials declare public interaction as safe, you should embrace remote work. You can have your employees set up home offices and run virtual meetings. You can set up an e-commerce site to advertise products and then deliver them by courier.
If that’s not enough incentive, one of the best benefits of remote work is decreased costs for both the employee and the business. The savings can be appreciated by everyone involved.
3. Get professional help
The financial impact of COVID-19 has been massive. You don’t think a wage subsidy program or term loan is enough help for you. You’re still treading water.
If that’s the case, you should seek out financial advice from professionals to see if you need to start credit counselling to improve your spending/saving habits or if you need to turn to a serious debt relief strategy like a Division 1 Proposal. A licensed insolvency trustee will be able to tell you whether you need to take drastic measures for financial recovery, or whether there’s still time to grab hold of your budget and pay down your debts.
4. Ask for public help
If all else fails, appeal to your loyal customers and clients. They don’t want your business to struggle. Send them a message to remind them that you’re still in business and that you need help to continue serving them. Use a small business crowdfunding platform to collect money for rent and payroll relief — you might be surprised by the number of donations that roll in. It won’t hurt to try.
The most important thing that you can do is try to stay positive and proactive. Don’t give up. You can still fight to keep your doors open and make it through this rough time.