There is no doubt that global business have incurred drastic losses due to the ongoing pandemic. According to a source, in September 2020, more than 21,000 suffered failure and many faced bankruptcy.
Moreover, the pandemic had a more significant impact on specific industries as compared to others. For example, organisations involved in brick and mortar suffered more considerable losses than firms selling SaaS.
Also, companies with an exit strategy in their business plan would cope better than others. Entrepreneurs can again recover different aspects of the organization. A few methods for improving the current status include availing government schemes, evaluating losses, embracing the new environment, etc.
5 Methods of Recovering Business After the Pandemic
● Evaluate Affected Areas
The primary function of recovery is to evaluate the affected business areas. These include warehouse damages, workplace issues, ascertaining availability to customers, etc. Besides this, focusing on healthcare regulations, new norms, employee environment, etc., should not be ignored.
However, businesses have also suffered significant financial losses. Therefore, good practice would involve ascertaining the current cash flow, profits, and sales. Compare the pandemic period numbers with the most relevant data before it.
By making the comparison, it would become easier to identify the organisations’ most affected areas and develop improvement strategies. Other areas of research should include HR, logistics, business competition, etc.
● Create Strategies for Rebuilding Business
After recognising the firm’s most affected areas, it is crucial to develop rebuilding strategies according to significance. Many businesses would reduce existing expenses through different methods, such as diminishing team sizes, using budget-friendly equipment, etc.
Moreover, businesses still functioning with remote employees would have to incur software costs, upgrades, etc., in their rebuilding strategy. Besides this, firms would have to re-engage in marketing practices while keeping a low budget.
Such practices would increase online visibility and increase sales. Additionally, warehouse maintenance would become a significant expense for many product-based organisations. However, the can engage in hiring reliable companies to manage the costs.
Likewise, business accountant and advisors would help to recognise financially hit targets and provide necessary solutions. The recovery and rebuilding strategy of the new business plan should include steps mentioned by the experts.
The organisation would require funds to avoid bankruptcy, late payment charges, higher interest from the existing lender, account closure, etc. The government provides many options for businesses hit with the pandemic.
However, business owners can also opt for unsecured business loans with no personal guarantee UK or other options. They can even get money using business credit cards, credit unions, line of credit, inventory, capital, purchasing financing, etc.
Additionally, organisations should begin active participation in grants, online competitions, hiring new investors, startup loans, etc. Such methods would ease the organisation’s burden of recovery, help retain employees, avoid recruit training costs, etc.
After the pandemic finishes, organisations would require to fill in the gaps of employees relieved during the crisis. It will help to achieve the ongoing goals before the situation occurred. However, it would require additional costs for new hires and training.
Besides this, the marketing budget would require an initial boost for the same reason. Develop methods of tackling unforeseen challenges using PESTEL and SWOT analysis while budgeting. Also, businesses would benefit from making a leaner operating budget.
Additionally, during the initial stages of recovery, business owners can decide to defer salaries and ignore commissions. Unfortunately, managing the former would depend entirely on the maintenance of personal finances.
However, if possible, business owners should avoid salaries until the initial recovery sustains. Similarly, businesses can continue with ongoing homeworking practices to reduce expenses and increase efficiency.
The initial phase of budgeting would become easily possible if the business sticks to the new business plan’s renewed strategies. Therefore, the next stage should involve organisational growth.
However, to sustain growth, businesses must increase its market credibility, broaden the supply base, and boost new customers. It should also enhance the range of services or products, identify new opportunities, study the competition, etc.
Many businesses often hire research and development professionals or outsource the work to get ahead of the market rivals. They provide the best solutions to help organisation diminish their product or service costs and add more USPs.
On the other hand, firms that don’t engage in R&D practice often suffer closure because of low sales volume. Such organisations suffer losses for the long term due to outdated products, cheaper competitor solutions, diminishing quality, etc.
Therefore, investing in R&D becomes crucial for any company and should become a part of the strategy. Organisations that have a funding issue can avail secured business loans UK or other loans.
● Other Important Business Recovery Aspects
Aside from taking measure for recovering financially, businesses should not forget to avail tax benefits. For example, organisations can add R&D costs to Corporation Tax and reduce the taxable amount.
Similarly, opting for co-working offices instead of a personal workplace would provide a better environment to employees, reduce expenses, etc. Likewise, homeworking can reduce an employee’s commuting time, decrease stress, increase productivity & efficiency, etc.
Therefore, as stated earlier, firms should lower their workplace employees until they recover their costs. Business owners should even decide on continuing the practice as its benefits would not diminish.
Furthermore, an effective business recovery strategy should include a timeline for each critical aspect. It would even ensure a budget for investing in new ideas during the growth stage.
For example, developing a funding timeline would help to restock inventory, hire and train employees, etc., consistently. Hence, it would enable tracking progress, ascertain returns from investment, avoid activities involving low investments, etc.
Additionally, hospitality, retail and travel entrepreneurs should not get disappointed with the slow recovery pace. Similarly, technology and online retail owners should take healthcare measures to ensure ongoing growth. Conclusively, the business recovery would involve many steps.