The COVID-19 pandemic has been a major economic shock for many businesses worldwide. Multiple companies have been forced to shut down, lay off staff, or make other drastic changes to survive the debacle. According to a World Bank Survey, around 25% of the companies saw their sales fall by over 50%, and the most affected ones saw their sales drop by over 72%.
In light of these challenges, it’s more important than ever for businesses to have a plan for protecting themselves during a crisis. Here are some of the best strategies that can help protect your business in the future or give it a fresh start.
Focus on the health and safety of your employees
The goal of putting a high value on health and safety is to safeguard your employees, sub-contractors, and consumers when they interact with your company. Focusing on the health and safety of employees includes having a plan for how to respond if an employee becomes ill and how to keep everyone safe in the event of a workplace accident.
Additionally, ensuring that you have a secure and up-to-date IT infrastructure is critical to safeguarding your data. A secure IT infrastructure means installing anti-virus software on all company devices, encrypting sensitive information, and using strong passwords.
Insure your business
Many businesses are underinsured, which can leave them vulnerable in the event of a natural disaster or some unforeseen event. Ensure that you have enough coverage to protect your business assets, and consider investing in business interruption insurance to cover lost income if your company is forced to shut down.
You can also try to initiate a good failed payment management strategy for your business. It will help you in customer retention and also gain new customers in the long run.
Keep your head up and plan for the future
The downturn caused by the pandemic will eventually end, and when it does, you need to be ready to take advantage of the rebound. According to PWC, by learning the right lessons from the pandemic and building resilience for the next crisis, businesses have an opportunity to turn the COVID-19 disruption to their advantage.
There are multiple ways to do so.
- Revisit and re-evaluate your business continuity plans. Ensure they are up to date and relevant and that all employees know what to do in the event of a disruption.
- Take the time to review your supply chain and look for ways to make it more resilient.
- Use this crisis to protect your business by investing in a digital transformation plan. It will help you position your business to come out ahead when the market recovers.
Take advantage of Federal Relief
You are not out of luck if you cannot cover the operational costs of your company post the pandemic. The government will be providing low-interest federal disaster loans, guaranteed by the Small Business Administration (SBA), to companies that have been affected by the pandemic.
You can apply for an Economic Injury Disaster Loan to cover the unforeseen expenses due to the pandemic. It can include payroll expenses, accounts payable, fixed debts, and other major expenditures.
The COVID-19 pandemic has been a significant shock to the global economy. To protect your business for the next crisis, arm yourself with a robust plan that considers all the risks and challenges along with possible solutions to address them.
Although it is impossible to predict every possible crisis, being prepared for the unexpected can help minimize damage and keep your business running. By following the strategies mentioned above, you can give your business a fresh start and ensure its success in the long run.
Additionally, if you need any help regarding credit collection services for your business and increase your revenue, hiring a good debt collection agency would be the ideal solution.