The covid-19 pandemic has taught small business owners that nothing is certain and that everything can change in the blink of an eye. Planning ahead so that both your business and your employees remain stable in times of crisis is more vital than ever.
In this blog post, we’ll explain how the pandemic has taught small business owners to plan ahead. Specifically, we’ll cover planning ahead in terms of payroll, maintaining inventory, and paying off or consolidating debt.
1. Plan Ahead For Payroll
In 2020, 52% of small establishments in the United States told their employees not to work. Due to mandated government shutdowns, small businesses lost clientele and therefore did not have enough work or enough cash flow to make payroll.
But most small business employers care about their staff. They want to keep paying them and not deprive them of their livelihood. The pandemic has shown employers that they must prepare for situations where their company experiences a sharp decrease in business. This way, the owners, as well as the staff, can continue to get paid on a regular basis and not be forced to change jobs or file for unemployment.
2. Plan Ahead For A Decrease In Inventory
Since the beginning of the covid-19 pandemic, 36% of establishments in the United States experienced a shortage of goods, and 11% experienced difficulties sending and receiving shipments. Small business owners need to prepare for a decrease in the availability of their products and keep a limited stock on hand for hard times.
3. Plan Ahead For A Surplus Of Inventory
As a result of the pandemic, 56% of US businesses underwent a decrease in the demand for their goods or services. A decrease in demand can lead to a surplus of stock just sitting uselessly in storage. This stock, if perishable, may go bad before the demand for it rises again. Small business owners must take this into account, watch trends carefully, and make wise decisions about selling surplus inventory before it turns into a loss.
4. Plan Ahead For Paying Back Debt
Since the pandemic, 62% of establishments took out a coronavirus-related loan or grant. Those loans are coming due, and now small businesses find themselves in debt. Going forward, they need to develop realistic plans for paying back loans during and after emergencies so that they don’t stay long in the hole.
When You’re Planning Ahead, Merritt Business Solutions Will Be There For You
When you’re planning ahead for a potential emergency situation in the future, know that Merritt Business Solutions will be there for you to help you make ends meet. If you need a short-term loan to cover important expenses, like payroll, inventory, or pre-existing debt, contact us about our Client-Credit Line: an unsecured loan that requires no application and no credit checks to qualify for.