Businesses were hanging by a thin line during the height of COVID-19. Inevitably, many were forced to shut down or declare bankruptcy. However, the pandemic won’t last forever, and this could be a small bump in your journey. What you need to prepare for is how you can bounce back after it has subsided. There is still a world of possibilities ahead.
When you are ready to rebuild and start again, these are what you need to do first.
Check the financial damage
The first thing that you need to do is check your damages and losses from the pandemic. Businesses across the United States had an estimated loss of $3.2 trillion because of the lockdowns and the virus. You have to assess how badly your business has been affected. It is vital to do this beforehand because it will determine how much work needs to restart your business.
Calculate the difference in your income now and before. If you had to take out PPP loans or anything, that should be considered as well. Many businesses had to close several branches and sell unused equipment.
The people you have laid off need to be calculated as well. Although you didn’t directly lose money, it is still considered a loss because money needs to be spent hiring and retraining new staff. Many of your old employees may not want or cannot return if you reach out to them. When necessary, consult with a financial manager to get a rough estimate of how much this would equate.
Reassess your business model
When you come back from the pandemic, you cannot adopt the same methods as before. Experience has shown that your current plan is not resistant or flexible enough to survive a natural disaster or calamity. Those that relied on traditional marketing and foot traffic need to reevaluate how they want to approach the new normal.
Aside from that, the market will most definitely not be the same as it was pandemic. Priorities have changed, and the behavior and preferences of your consumers have changed as well. Identify your past products and services that would still be in demand after the pandemic or if there is room for innovation. If you have not done so already, it may be time to explore new technology for your marketing and services as well.
In your assessment, you might have found that some of your floor plans and equipment were not as efficient and added too many expenses. There may be better ways to optimize your supplies to reduce costs for when you rebuild your industry. Groups such as KGG Consulting are great for this type of work because of their existing network that you can leverage.
Learn from past mistakes and successes
Another thing you should include while doing this is to learn from others. Take a look at your competitors if there is anyone who managed to thrive during this time. See if any of the things that they have done can be applied to you or if you can improve on them. Some were easily able to survive because of their ability to adapt to the situation.
Similarly, identify whether there is anything that could have been fixed to help you during that time. If you failed to plan for certain things or overestimated your abilities in some, then you fix these in your upcoming venture. Prepare for anything and everything? Was there anything lacking in your product or services? This should be addressed, and you can try to see if you can resolve it by modifying your current resources.
Secure your capital
The next major problem is your funding. Most businesses do not have many left after the pandemic, so you need to be extra diligent in looking for potential investors. Also, look into government initiatives or organizations that aim to develop and help recovering businesses. There are likely financing options included in these projects.
When trying to attract new investors to your business, it is best to highlight the changes that you will make to prevent yourself from sinking in the future. You present a good contingency plan in case another pandemic or something similar happens in the future. Also, make sure that your plan is done within a reasonable timeline. Even consumers and clients are still recovering, so it is best to be realistic with your expectations.