State and worldwide lockdowns, plummeting market, increasing numbers of unemployment, the closing of establishments–these are just a few of the major things that have been negatively affected by the pandemic. But the aspect that has been most affected are small and medium businesses. According to the Proceedings of the National Academy of Sciences of the United States of America (PNAS), a lot of small businesses have reported that they are temporarily or permanently closed.
Unlike big companies that can likely survive prolonged crises, small businesses depend on their daily sales to be able to stay open and provide continuous employment to their staff. However, a decrease in sales has been evident which forced many entrepreneurs to shut down their businesses. And if you are a struggling business owner, you might be wondering where you can find funds to keep your business afloat.
Review your insurance
Getting your business insured is surely a must because you may never really know when unfortunate events may occur, just like this pandemic. In getting insurance, it’s very important to check your policies for any gaps. If you have liability insurance, key person insurance, or business interruption insurance, you may want to double-check your policies with your insurer and see if they can give you compensation if not the whole cost of your losses. So dive in deep into your policies and communicate with your current insurance provider for clarifications.
Utilize loans from the local and national government
In most cases, the government provides support to its people, especially during crises. So take this opportunity and check out every offer that they can help you with your business. A government funding support that you can check out is the USDA loan for gap financing that provides relief and finances for both new and fresh businesses and existing businesses alike. They offer competitive interest rates, low monthly mortgage insurance, favorable loan terms, and no down payment required. USDA is insured by the US government and that allows them to offer better deals compared to conventional loans.
Check with your bank
Depending on your bank, you can try to apply for a business loan. Usually, they will thoroughly investigate your finances to see if you are eligible for a loan. They may require collateral, financial statements, a good history of your credit, income, assets, and business experience and plans. Typically, bank loans are tax-deductible so this can also help you track, plan, and budget your monthly payment loans.
Bank loans can be flexible which means that there are no rules on how you are going to spend the money and you don’t have to give up equity. However, banks have been stricter with their standards when granting loans as they are also at risk.
Take advantage of technology and online platforms
Nowadays, most people have turned to online social platforms and digital subscriptions for entertainment. Refocusing on marketing your business to where your target audience and clients are will certainly help boost your funds. You should also consider online tools and apps that will help save some money such as salary apps for fast, convenient, and often a free transfer of payroll to your staff and employees.
There are also sites where you can perform crowdfunding your business in which you can set a specific number of days and set a goal of how much money you’d like to raise. People around the world will be able to see your product or services and support it by pledging.
Seek help from family and friends
Asking for any kind of support from your family or friend may help you to increase your funds as well. This way, you can also make time and reconnect with them especially when we are almost living in a virtual world where physical contact is unavailable. A study by Science Direct shows that small to medium business owners can experience burnout, stress, and occupational loneliness.
Checking up on your friends and loved ones may help you reduce the stress and loneliness that business owners feel which can worsen when facing problems. Think of this as an investment in your health and hold your ground. A business is nothing without its owner. Keeping and maintaining your motivation in times of hardships may prove to be difficult but with the right people and support system surrounding you, the burden may ease.
While building and maintaining a business is scary and overwhelming during the pandemic, it does not mean that you have to go through it alone. Small and medium businesses have the power to revive the economy and play an important role in sustaining everyone’s lives. Remember your core values, visions, and realize that what you are doing has a bigger impact than what you think.
