Owning a business can be a difficult task, especially when faced with a crisis. Today many entrepreneurs are struggling with financial challenges due to the pandemic and are not confident that they can keep their company afloat.
One way owners can boost their confidence is by creating a crisis management plan. This could potentially help decrease the challenges of running a business during troubling times as you will be more prepared and will know what steps to take to stay successful.
It is important for you business to have strategies in place to help minimize disruptions when a disaster strikes so that you can continue operating normally. In order to help business owners prepare for these hard times, The Hartford recommends the following eight crisis management strategies to help your company remain strong.
Get an SBA Loan
The Small Business Administration (SBA) is now providing low interest loans to small businesses with its Disaster Assistance program. The approval times are also significantly less compared to other business loans making this a great option to help you during hard times.
Get Money From Your State
Small businesses can access grants, loan programs, and funds directly through their state. A majority of states currently have these options available for those who may be in need of assistance during the pandemic. It is recommended to review your state’s website to get the best information regarding their small business relief options.
Get Money From Your City
Just like most states, a majority of cities are providing funds and loan programs to small businesses that are facing financial hardship due to COVID-19. Be sure to review your city’s website to see if your community is offering aid to local businesses.
Contact Your Accountant
There have been multiple credits available for business owners in including FFCRA and ERTC that you may be able to claim. The Families First Coronavirus Response Act provides businesses with tax credits to cover certain costs of providing employees with paid sick leave and expanded family and medical leave for reasons related to COVID-19. The Employee Retention Tax Credit compensates you for up to 70% (depending on year you are claiming it for) of the qualified wages paid to employees in that period. Receiving these credits can have a positive impact on your cash flow.
Speak with Your Banker
Contact your bank to see if they currently have any special loans or financing options for small businesses during the pandemic. A majority of large banks are currently offering programs to help business owners. It is also a good idea to confirm your available lines of credit with your bank.
Reach Out To Your Big Vendors
It is recommended to contact your largest vendor or supplier to see if they can offer you extended payment terms so that you can have less concerns about cash flow. Do not be afraid to ask your vendors as you may be surprised by their answer!
Communicate with Team Members
Be sure to reach out to your staff frequently and keep them posted on how your company is navigating the pandemic. Be sure to discuss the benefits you and the government are providing employees as well. Even if a staff member has been furloughed, keep them updated on company developments so that they are ready to return when your business can bring them back on payroll.
Use Your Downtime Wisely
If you find yourself having extra time during your work week, take advantage of this! You can use this additional time to plan your company’s future, take continuing education courses, organize your data, and most importantly rest.
We hope these strategies assist you to feel more confident during these challenging times. By creating a crisis management plan, this will help ensure that your company remains strong even when facing the unknown.