The world of a pandemic:
COVID-19 has drastically changed the way businesses in the modern-day world operate. As the world progressed with time, pandemics have played a crucial role in developing the society and the elements in it. They have helped in the evolution of the health care system and also enabled technological innovation. Businesses, in turn, have helped society to keep developing the economy of the world along with the technological advancements.
Businesses adapt, that is what pandemics turn the business models into. It is the actions during the crises that shape and mold the companies in the long run. With a pandemic that has been witnessed by human history in the most unknown and uncertain outcomes. Businesses have to figure out ways in serving their customers.
This is a guide of conquering the entrepreneurial journey and looking forward to overcoming this pandemic of COVID-19.
Entrepreneurs Guide to Surviving COVID-19
The companies today are offered with guidance from the CDC and Chamber of Commerce towards preventing workplace exposure of COVID-19. The way you interact with the customers, community, and team matters. Here are some of the tips to keep an effective medium of communication going on around your business operations.
- A checklist by the US Chamber of Commerce on prioritization, establishments, preparedness, coordination, and communication plans as a COVID-19 business checklist.
- Interim guidance for businesses and employers responding to COVID-19 for the month of May 2020.
- An article by the US Chamber on concerns of small businesses and their management.
- A blog on an employer’s guide to navigating the Coronavirus.
- A blog on COVID-19 unemployment benefits for every state in the US.
- An article on how to manage a remote team of accountants.
The impact of COVID-19 on the financial stature of businesses especially the startups and small businesses is unprecedented. You may have faced some unwelcoming challenges where the decision making has been continuously transformed for the longevity of the company to sustain its operations and life. There are tools out there that can help you save the cost, forecast cash, and cut on unnecessary spending on tools and platforms. Giving back to your finances during this time will motivate you in better decision making.
- Free cash flow tool by Ignite Spot to help you in managing the financial position of your company.
- A blog on reevaluating your budget for COVID-19.
- A blog on raising capital through loans.
Business Costs during COVID-19:
It is inevitable for businesses to take short term measures as a response to COVID-19. The world economy, its sustainability, and the people associated with it have been deeply affected by the pandemic and no one knows how the crisis will unfold its consequences on the global economy. Managing your business finance towards balancing your expenses, revenue, and profits will involve cutting and managing the operations more efficiently. This means:
- Removing non-essential expenses such as parking, paid tools for multiple marketing purposes, vehicle costs, office cleaning services, etc.
- Reducing fixed expenses such as office space and laying off less needed people in the office.
- Requesting payment deferrals from vendors and suppliers for the affected supply chain.
Paycheck Protection Program:
Paycheck Protection Program is a loan designed by SBA (Small Business Administration) with an aim to provide funding for small businesses to keep the employees and workers on a regular payroll, pay the rent for business space and mortgages, and spend on essential utilities. Paycheck Protection Program is a $350 billion program that will give these small businesses with about eight weeks of the cash reserve by the SBA.
- All small businesses are qualified to avail of the loan.
- The loan does not require any collateral or guarantee.
- The loan is deferred for the first six months, which means you don't have to pay any money for that period.
- The maximum amount that a single small business can avail is $10 million.
- The loan will cover the eight weeks expenses from the date of availing the loan.
- The loan can be laid entirely off and turned into a non-taxable grant.
Apart from Paycheck Protection Program, the government of the US is also providing federal loans, state loans, and grants. You can also avail of bank emergency loans and apply for fee forgiveness. For example, Citi is waving the service fee of its small business customers; Washington Federal Bank offered a line of credit up to $200,000. There are also many grants and relief funds from private corporations such as Facebook, Amazon, QuickBooks, and GoFundMe.
The world has been witnessing an economic downturn ever since the virus took a toll in the world’s largest manufacturer, China followed by Italy, the USA, Spain, Russia, France, India and the rest of the world. Businesses have been majorly impacted by the COVID-19 and entrepreneurship is on a real test to adapt to the consequences of the severity of this economic recession.