Coronavirus Considerations for Business Owners

The current global environment presents challenges to everyone, but especially to the entrepreneur or small business owner. They have unique and overwhelming decisions to make. 

We are in the position to talk to many businesses and to understand the finances of those business. In that position, we’d like to take a minute to give a few recommendations.

Isolation
Technology gives us the ability to be better-connected. Right now, whenever possible, people are working from home. While nothing can beat a handshake and an in-person meeting, video chats seem to be a solid way to gauge whether you will work well with someone.

We will be doing video meetings whenever possible.

It’s important to stay positive.

Some people are not worried about the Coronavirus, thinking that they won’t get sick, or they’ll be fine if they, and they go about life without changes. That kind of attitude will not help restaurants reopen sooner.
We recommend everyone follow CDC recommendations and possibly going further.

If we all just keep physical interaction to a minimum for two weeks, this problem would be solved. 

Business
Keep working; keep doing what you can. A lot of us are lucky and have businesses that are based on a computer and can work from home. Those businesses can keep operating.

For those that can keep operating, please keep spending, too. The small business economy is very inter-dependent. Maybe your business will even be able to grow.

If you cannot continue to operate at normal levels, there are a few considerations you might make.
Small business management is cash management, so let’s touch on a few points here:

• Operate at whatever level you can. In some cases, this means doing take-out orders only, ensuring to limit the number of people in the store and keeping 6 feet from each other.
• Communicate if your cash is running low. Vendors, landlords, and banks will be more flexible if you communicate the need instead of just missing the payment. New arrangements that might be acceptable include deferring rent payments until the end of the lease or working out a different payment arrangement with vendors or suppliers. 
• Getting a loan to cover cash needs is a good option, as interest rates are low right now.
• Doing your taxes now is a possible source of cash, If you are expecting a tax refund.
• Reducing or cutting expenses is a great option especially if the business is not operating.
• You may need to expand your offerings to provide different services that are lower-margin, but they are still cash-in-the-door.
• Expand your services or marketing to address the unique conditions of the times, such as the disinfecting aspect of your cleaning service.

Keep It Up
Spring is upon us, and the outdoors are suitable for walking again.

Remember to smile when you wash your hands, make sure you listen to music, and be there for each other. Feel free to email us at hello@sundbergtc.com if you have any questions.