Best Moves You Can Make to Keep Your Business Afloat During COVID-19
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Best Moves You Can Make to Keep Your Business Afloat During COVID-19
Keeping a small business going can be a serious challenge in ideal circumstances. The COVID-19 pandemic, however, is far from ideal. Every industry has been impacted in some way or another by the pandemic and subsequent shut downs. Small businesses, who may have had little cushion to begin with, have been hit especially hard.
As vaccination rates increase and areas open back up again, however, things will start to turn around. Take this time to start planning how to help your business survive through the pandemic and thrive beyond it. Here are some tips to inspire you.
Form an LLC
When you start a business in the U.S., it’s automatically considered a sole proprietorship. Because this business structure is free and relatively no-fuss, many business owners stick with it for years. However, it’s not always the best move, and can put you in a precarious position. Forming a limited liability company, or LLC, may open up doors for you.
This business structure offers valuable protection for business owners because it creates a layer of legal separation between your assets and your companies. This means if your business winds up with debts, either through loans or litigation, you can only lose the value of the business itself. The LLC designation doesn’t mean you can make rash money decisions, but it does reduce personal risk and empower you to make bold moves you might be too fearful to try otherwise.
If you decide to register as an LLC, be sure to confirm your state’s requirements, but know that you can make this an easy process through an online formalization service.
Expand Your Digital Offerings
Although many cities are opening back up as the population gets vaccinated, it still makes good sense to focus on expanding your business’s digital footprint. Most experts agree that customers and employees alike will continue to want virtual and digital options for work and services.
There are several ways you can do this. For example, you can invest in telecommute technology that allows employees to collaborate across in-office and remote teams. This way you can continue to offer part- or even full-time remote options to those who work best from home. On the client side, you can look into creating a mobile app so customers can access your business no matter where they are. Take some time to consider whether a mobile app is right for your business first but keep in mind they’re a bigger undertaking than some businesses anticipate.
Consult a Financial Advisor
Finally, now might be the ideal time to reach out to a financial advisor. Apart from a few specific industries, most businesses lost money during the pandemic. Small businesses may have lost enough to put their future stability at serious risk. If you took out loans, that funding may have been able to cover the gaps this year - but you still need to do some serious financial planning in order to manage paying off those loans.
A financial advisor can be absolutely invaluable in this position. They can take a look at your debts, income, expenses, and help you figure out the best techniques for rebuilding a healthy cash flow. They can also help you go over the rules for any loans you've taken out to help you figure out if early repayment is feasible for you. Although it might feel better to pay back loans as quickly as possible, some have fees for paying ahead of schedule, so this advice can help you avoid unnecessary costs.
Getting your business back on track after the pandemic might feel like a Herculean task. However, we hope this advice helps you come up with an approachable game plan. The right moves now can set your company up to thrive for years.
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