It’s unfortunate that several businesses permanently shut down because of the coronavirus pandemic. Many of them struggled even before the crisis started, and things only got worse. Since the business owners could no longer keep up with the expenses, they decided to close. If your business is still thriving despite what’s going on, you’re lucky. Make sure that you learn from what happened to these companies so that you won’t end up with the same fate.
Save for the rainy days
Treat your business like your personal finances. It means that you need plenty of savings for the rainy days. No one expected that this pandemic would lead to zero profits for several businesses. If you didn’t save enough money, you have no choice but to close. However, with sufficient savings, you can push through for the next few months. By then, your business could operate as usual.
Digital operations are necessary
We already have an idea that brick and mortar stores aren’t going to survive for long. Most customers now turn to online stores for purchases. However, several companies still decided to pursue a regular store. When the business closures started, they try to scramble and online campaign, but it was too late. Therefore, you have to understand the market and improve your digital operations. It ensures that even if stay at home orders will continue for several months, your business will still have sufficient profits.
You should study the market
Market analysis and feasibility study are crucial for any business. You couldn’t start one unless you understood what it takes to succeed in your chosen industry. If you already know that you won’t have enough customers, there’s no point in pursuing the business. If most people already found a trusted brand, it would be difficult for you to compete with it. Even if you feel confident with your business idea, you should still conduct a study or survey before you open a business.
Build relationships with investors
It would have been possible for some businesses to survive if they can keep the ball rolling. However, they no longer have enough source of money to continue the operations. It means that you have to connect well with potential investors and convince them to keep spending money on your company. Their investment will keep you afloat at a time when you don’t have enough income. Since they will be hesitant to take their money out at this time, you need to have convincing arguments. Invite them to your office and pitch your business plan. Your meeting room should have a projector wall mount like the ones you can buy at www.unicol.com so that you can have a smooth presentation. Hopefully, you can convince these investors to keep believing in you.
Your employees matter most
The employees serve as the backbone of your company. You won’t be where you are now without then. It also means that if you don’t want to get bankrupt at this time of crisis, you have to invest in them. Laying off employees because you’re barely getting any profit shouldn’t be first on your list. You need them to keep the company running. You can change the job description of some employees if they don’t fit your current business model. Help them get through this crisis, and they will return the favor.
Be transparent with your investors
Everyone knows that this crisis left everyone in despair. Almost all industries took a hit due to closure orders. If your company isn’t raking any profit, you should let your investors know. Be transparent about the situation. Sure, you fear that they will pull out, but they also deserve the truth. Besides, they also have a stake in this game. They deserve to know what’s going on so they can also extend help in any way possible.
You need to know when you should give up and try other things. Even if you want your business to succeed, you shouldn’t force it if it’s no longer viable. You need to accept that it’s about to fall, and you have to consider a change in industries. Use your brand, knowledge, and experience to think of something else to sell. While you’re still capable of doing these changes, you should.
Learn whom to trust
As your business starts growing, you will hire more people to keep the operations going. Some of them will handle difficult aspects of the business. Others will deal with finances. Make sure that these people are trustworthy. If you place the business on the hands of people whom you couldn’t trust at all, you will fail. The worst part is that you won’t know that you’re heading down the drain up until it’s late. Most businesses that went bankrupt for this reason learned it the hard way. They were so trusting, and they ended up placing their faith in the wrong people.
You can learn from failing
Failing and starting over again shouldn’t scare you. Although some of the businesses didn’t survive the crisis, some of them managed to start over. It shows that failure is part of life, and it will only help you get better. The point is that you should learn from your experience and don’t make the same mistakes in the future.
Going bankrupt isn’t the end of the road
Staring over again once you filed for bankruptcy or ceased business operations is difficult. You might not reach your goals at all. However, it doesn’t mean it’s over for you. The current business stopped, but there are other opportunities out there. Learn to explore other ways to make money. Use your previous experience to do a better job in the future. It’s not yet late to collect the pieces and have a successful venture in a different field.
The last thing you want to happen is to file for bankruptcy and end your business. You worked hard to reach your place now. You can’t allow anything to stop you from succeeding. Eventually, the economy will reopen, and things will get back to normal.