How Small Businesses Are Affect By COVID-19 and What They Can Do To

What a world we are living in right now. Due to the COVID-19 pandemic, it seems like the entire world is shutting down right before our eyes. This has closed schools, restaurants, and thousands of small businesses all around the world. This is causing panic to those business owners who have worked so hard to get their business started, only for it to all be taken away by something out of their control. These business owners are tirelessly looking for answers to when they can reopen and start regaining their customers. While they wait, they are losing money because their source of income was taken as well. Owners of small businesses are hit really hard by COVID-19, here is what they can do to help themselves

Plan out your cash flow. Deepen your pockets by arranging any increases to your lines of credit that you can,  just in case. This includes calling your credit card companies and asking for credit line increases now, while this is still fairly early in this situation. You don’t have to tap into them, but you sure want to have them. This is also a good time to increase your liquid reserves by setting aside more of your revenue for “just in case” money.

Even though things are rough there are always opportunities to look for. Don’t just sit back scared, look for ways to go on offense.  Are there promotional opportunities to harness this situation? Is there a struggling competitor you can arrange to buy? Is there talent in the market that you can snap up because they feel unsettled by where they are currently working? Opportunities come in all shapes and sizes and you should always be looking for them, but keep an eye out in the next few months. 

What some businesses are doing is furloughing their employees. This means they are “letting go” of a percentage of their non-essential (or even all) of their employees with a guarantee that they will get their job back as soon as they can. My uncle works at a restaurant in AG and that is what they are doing to protect their business. During this time he doesn’t have a job, but it’s nice to have the same job once this is all over. Even Disney is doing this with their employees. Just last week, they furloughed over 43,000 employees that work at Disneyland. These “cast members” as Disney calls them, included characters, food workers, ride operators, etc. It’s a scary time when you don’t have a steady source of income, but it does help that these businesses are helping the best they can and is something I would recommend to business owners. 

As you probably know, schools are closed which means DireLights is also closed for the time being. Yes, we technically have employees, but they aren’t paid the same way of other employees that work for a small business. It’s sad we can’t continue working this year, but I plan on taking the class next year because I love the things the class has taught me. Small business owners are struggling right now, so if you know a small business that is still open, maybe try shopping at their store. They might have a hidden gem that you wouldn’t find at a bigger store, and you’re helping them out more than you will ever know.

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