Business lessons learned during COVID-19
Business Lessons Learned During COVID-19
If you are like many small business owners, you’re probably astounded by how the world has changed in a very short time! While we can all hope that the pandemic is a once-in-a-lifetime scenario, the truth is there is a lot in life and in business that is uncertain, and there is a great deal we can learn from the response to COVID-19 to help plan for the future.
Yes, your business might have changed drastically in recent months. But there is good news in this, too! It means your business is adaptable and that you can find ways to survive.
Here are some lessons learned from resilient businesses and business owners during COVID-19.
1. Resilient businesses are adaptable
There are ways to adapt small businesses to ensure they can continue operating during a crisis. The question is whether you’re willing to make the adaptation, or are fighting to keep your business exactly the same as it was before?
You might miss the old ways of running your business (in fact, I think many of us are missing the sense of “normality”!) But this doesn’t mean you have to hold firm to the old ways. Operating a store online, allowing your restaurant to focus on takeaway orders, offering classes online, adapting your goods or services, and letting employees work remotely are all changes that can ensure your business stays open after COVID-19 is over, and even save you money in the long run.
2. Resilient business owners plan ahead
While almost nobody saw a pandemic coming, some experts warned about the possibility of a recession and how to prepare for it. Unfortunately, many small business owners limit their planning to a crisis that lasts only a few weeks, which is where financial troubles can occur.
Disaster can strike at any time, and it doesn’t have to be a global pandemic. Having a healthy cash flow, a savings account with enough built up to cover costs for at least a few months, and a plan for addressing recession scenarios will help your business survive tough times, whatever brings them about. You can forecast your cashflow using bookkeeping software such as Xero, MYOB or Quickbooks. Alternatively, you can download our free cashflow forecast template here.
You don’t want to be reactive to an emergency situation, because it means your decisions will likely be made quickly and carelessly. Instead, take a proactive approach and plan ahead so you’re prepared and don’t have to make tough decisions based largely on emotion. Prepare for an emergency that lasts months, not just weeks.
3. Resilient business owners pay attention to what others are doing
In situations like COVID-19, business owners can learn from and help each other. Take a look at what others in your industry are doing, and even look outside your industry for inspiration. Seeing someone move their services online might give you an idea for how you can provide yours remotely. Noticing how businesses similar to yours adapt can influence you to make beneficial changes to your business.
Reach out and talk to other business owners, and to your customers, to find out how you can help them. At times like these, you aren’t alone in trying to keep your business operational. Everyone is looking for solutions and there’s a good chance you can help each other.
If you need help with budgeting, forecasting or general advice around your business finances, it’s a great idea to chat to your local accountant or bookkeeper (especially ahead of the EOFY!). With today’s cloud accounting capabilities, we can discuss your business wherever you’re located in Australia and make recommendations based on your business type.
Final thoughts
Global pandemics can devastate a small business and have lasting impacts on an industry. There are many lessons that small business owners can take away from COVID-19 to help them survive the next economic emergency. Being adaptable, planning ahead and paying attention to others can all help your business through any economic disaster.
Want to chat about your business? We are more than happy to listen. Please feel free to contact our friendly team for a free consultation, or see below for our bookkeeper locations.
Our Bookkeepers
Justine Day: Southern Highlands / Bowral Bookkeeper
Amanda Graham: Southern Highlands / Bowral Bookkeeper
Petra Austing: Southern Highlands / Bowral Bookkeeper
Karin Evans: Gold Coast Bookkeeper
Pru Hall: Wollongong Bookkeeper
Jackie Short: Canberra Bookkeeper