In the wake of COVID-19, small business owners were sent scrambling to steady the rocking seas of the economy. It was with good intent that some of them tried to cut expenses early so as to avoid certain drowning. But making big decisions based on emotions seldom produces great results. The panicked moves you might have made to your small business’s bottom line may not materialize a negative impact now, but much of that will take a while to realize. The COVID-19 impact on small business has not fully matured yet, but there may be some things for a small business owner to consider before it does.
The first thing many small business owners did when the COVID-19 pandemic had them running for life jackets was to cut anchor on staff. This would seem like the necessary step for saving your business, especially if you are not making any money. But trying to recover those people along with the talent and knowledge they have will be harder than you think. Reopening is going to take people to make it happen. The trouble with that is, they may not be around when you need them. This is just one example of panicked moves that may result in painful recoveries down the road. The COVID-19 impact on small business will be harder if the reasons for making decisions are out of fear.
You Need People To Reopen To Reduce The COVID-19 Impact On Small Business
Do you remember the last time you hired a new employee who didn’t know anything about your business? How much time did it take to get them up to speed? Taking the time to hire new people and train them on how to do what you do at your small business will significantly cripple your abilities to achieve profitability. Do you have time for that?
If you decided to let your people go, you probably weren’t thinking about future plans. You might not have also considered that they may start looking somewhere out of fear themselves. People will always default to self-preservation over loyalty to their employer.
There are programs with the SBA that can still help you through this COVID-19 pandemic, even if you haven’t applied for one before. The Small Business Administration is working with small businesses just like yours to help them stay afloat. The news and rumors around these programs shouldn’t prevent you from getting help. Find out what you qualify for so you can keep your employees where they should be; with you.
Drastic Cuts In Budget Could Cost More Than You Planned
There are a few things that small business owners will do to keep their ship from going under. The second panicked move they will make besides layoffs is slashing budgets to the point of demise. It’s one thing to scale back, and another to cripple recovery.
Taking a look at the existing budget and making financial moves to keep going is wise. Wildly slashing everything out of every budget in an effort quell anxiety is not a good strategy. Marketing and training budgets are usually eliminated during a crisis. That’s normal. Whatever projects you have money set aside for growth this year should be halted for now.
The kinds of budgets that need to stay in place if at all possible are the kinds of things that are necessary to take care of your employees. Sure, they don’t need the company retreat this year. Maybe the incentive programs you have for them can be paused. The truth is they’ll be fine to let the go of them to keep their jobs. Ask any employee if they’d rather have their perks rather than their jobs. It’s an easy decision.
Healthcare benefits matter right now more than any other. With a pandemic raging right now on the seas of small business, you need to keep your employees healthy. Now is not the time to eliminate the things they need in place to feel safe.
This is actually a great time to see if better benefits at more competitive rates are possible. Sometimes it takes a hard time to make a small business owner see what improvements can be made. Benefits are one of those things.
PEOs Make Big Improvements In Small Businesses For Less
Did you know that PEOs are helping small businesses save more on benefits every day? Some businesses saved so much they added more to other budgets as a result of the savings!
If you want to improve your business right now, a PEO may be the solution you need. PEOs are helping improve small businesses like never before. If you’d like to know about how PEOs, contact us today.