There are Seven Small Business Struggles during COVID-19 How to Overcome Them

The COVID-19 pandemic has significantly and rapidly changed ways of life for practically everyone worldwide to some extent. For example, it initiated them to practice social distancing, wash their hands more frequently, and get adapted to putting on a mask. The public health warnings also permit many people to work from home for the first time, and some will do so for the predictable future. There is also a distinct link between small businesses and COVID-19, specifically as authorities temporarily forced non-essential enterprises to close and give instructions that all others follow new health and safety measures. Many small businesses were faced with challenges prior to the pandemic, and COVID-19 only worsened them. If these issues seem recognizable, there's hope. Here are seven related small business struggles and instructions for managing those problems:

1. Cash Flow Shortages

The tricky thing about the delta coronavirus and its unprecedented nature is that no one knows how long it will endanger society. In the initial days of the public health crisis, numerous people expected the virus would not spread or that it would demonstrate a reasonably short-term challenge. Likewise, most small business owners understand that saving for emergencies is wise, but they don't foresee these dreadful conditions continuing for months with no solution in view.

 

A survey of approximately 6,000 small businesses began studying the seriousness of that reality. Researchers surveyed participants in late March and earlyApril. One finding specified that 75% of businesses only had enough cash on hand to last for a couple of months or less. Relatedly, 72% of businesses anticipated operating through December if COVID-19 only lasted a month, but the segment dropped to 47% if it continued for four months or more. If your business is affected by cash flow challenges, then ponder on applying for some available loans. The Business Government NZ has many temporary COVID-19 assistance options to explore. For example, that organization formerly offered the Wage Subsidy and the Resurgence Program. Unfortunately, this initiative has not expired and also has other assistances remain in effect. You can also reach out to your providers such as credit cards companies, banks, or Insurance companies. Some allow people to postpone payments or reduce payments through the pandemic.

2. Business Owners' added Stress and Worry

Frequent periods of added stress and worry are usually for small business owners to encounter. However, delta coronavirus-related factors brought new concerns that pushed stresses and fears to new heights and introduced some you probably did not imagine having. For example, perhaps you are worried about dealing with the news that an employee of your store tested positive, or you have had increased stress due to customers disregarding your pleas to put on a mask.

A survey in May 2020 poll assessed small business owners' stress and worry levels before Delta COVID-19 and during it. Both male and female participants registered a rise during the pandemic, but women's impact was especially severe. Consider that 38% of females underwent daily stress pre-COVID times, but 62% did in the study. Of course, you cannot realistically expect to eradicate all causes of stress and worry. However, self-care is the first step to handling it.

 

Ms. Amy Ritsema, who is a co-owner of a corporate wellness business, clarified, "We are in crisis mode. We are not thinking about ourselves. We arethinking about everything else. If you are not caring for yourself and your stress and well-being, your leadership skills will not be at their best. You will have to be the best person yourself and take care of yourself first so that you can be at your best for your employees."

 

Simple things like keeping to a regular sleep schedule, eating healthily, exercising, and maintaining a positive relationship can help you keep stresses and worries at bay. However, if those steps do not do the trick, talk to your doctor for further help and guidance. Consider that by investing in yourself, you are empowering your establishment.


3. Diminishing Revenue

Having a drop in revenue is another issue related to small businesses and COVID-19. It could happen for many reasons. For example, perhaps you are an owner of a small cafe and had to significantly decrease the number of diners housed at once due to social distancing procedures. Alternatively, maybe you own a brick-and-mortar store and are suspicious that online retailers took a good amount of your business as more people decided to stay at home.

 

The survey issues in May 2020 showed that 62% of small businesses saw a vast decrease in revenue. Only 12% of businesses showed a revenue increase. Moreover, 47% mentioned that their revenue losses could be in the range of 10%-30%, while 41% disclosed they surpassed 30%. Another 13% showed that they had complete revenue losses.

 

If a drop in revenue harms your business, or you fear it could start by being as proactive as attainable. How could one diversify their revenue streams and know what new customer needs are? Begin by asking them frankly about how your business and its contributions could make these tough times a bit simpler.

What do you not offer for what they pay for and would be grateful if you did? You might even discover if the details of several transactions happen through the internet now could boost profits, for example, some farmers associated with virtual markets prior to opening in person after the pandemic. Customers could now browse and shop for fresh produce online, then request delivery or a pickup possibility.

4. Supply Chain Struggles that a Hampers Operations

It is cautious about saying that small business struggles are connected to the delta coronavirus that spans all industries. However, some sectors find themselves much severely hit than others. For example, several travel brands ponder as to how to attract people back to their businesses. Ireland is famous for its lively pub culture; these publicans cannot reopen unless they serve customers' drinks substantial meals. But, unfortunately, many are not equipped to do that and decided serving food is excessively expensive. Industries that intensely rely on goods shipped from elsewhere faced much more significant difficulties. As an example, 30% of U.S. building supplies are imported from China. It is believed that COVID-19 originated in China; construction companies were among the first to experience severe supply chain blockades. Even the giant company Amazon came under severe burdens, too. Supply chain having troubles meant that many people who shopped there in March 2020 observed more sold-out items or realized that deliveries were delayed.

 

On returning to small businesses, explicitly, a survey done of more than 100,000 owners in the United States observed COVID-19's influence on supply chains, among other things. The results indicated that 45% of overall businesses mentioned supply chain disruptions. However, the total climbed to 66% in retail, 61% in health care and social assistance, and 50% in production.

 

Protect your supply chain by interacting with your regular suppliers and deciding whether they have the means to fulfill your needs for the predictable future. Then, when it is essential, investigate how new suppliers might help fill the recognizable gaps. If supply chain issues affect the customers, be honest about likely delays or prolonged product outages. Let them know everything you are doing or have done to mitigate the problems.

5. Concerns About a Second Wave

There are many discussions about the other coronavirus strains of pandemic centers on whether another wave might happen. The results of a July 2020 survey on small business owners found 65% of them worry about closing again or remaining on-operational due to another wave occurring.

 

There are several small businesses already struggling associated with the delta virus. For example, what if you spend a substantial sum of money doing all required to reopen safely. Still, a government ruling finally deems your entire sector run safe to stay open due to several outbreaks in your industry. Many bar owners found themselves similar when cases spiked in some regions worldwide, and health officials connect some to that business category. July's survey disclosed entrepreneurs acquiring many actions to protect their businesses as much as possible if then extra wave would strike. For example, the most collective decision mentioned by 32% of respondents was to purchase extra supplies or products. In addition, a quarter of those polled reported making new enhancements to their e-commerce or digital payment selections. One can monitor the situation by recollecting the most significant issues faced during the previous phases of the pandemic. What issues were picked up that were challenging that made one helped customers and employees? What were the learnings since then that could make one stronger and fast-moving?

6. Consumers Making Lasting Changes to manage with Continuing Anxiety

Even people who previously described themselves as level-headed and calm have plenty of reasons to feel nervous now. Many are concerned about loved ones falling ill or becoming sick themselves. Job losses and worry about paying rent or mortgages are natural fears for some households. As people try to deal with the way life is now, many budgets their expenditure preferences and patterns. Taking a look at global consumer trends showed what some small businesses should assume in the coming months. For example, 52% of the investigated participants said they would change how they shop, with 44% choosing to buy groceries online more regularly. Moreover, 46% said if they decided to eat out, they'd listed their dining experiences and arrangements that give them more room space between diners.

 

Being anxious about the future is a familiar thread concerning consumers, small businesses, and COVID-19. However, enterprises can give themselves the best chance of success by first proving to customers and employees that spending time at a location is safe. Publishing blogs about the new safety procedures or even short videos showing some of the safety procedures in action is a promising beginning. Next, business owners should remain sympathetic that many people assume that the safest option is to hold tight to their financial resources if their situations worsen. Finally, giving away freebies to loyal customers. Introducing limited-time sales and offering discounts for people who buy in bulk are all things a business could do to show customers they are still spending their money wisely and feel valuable about doing it.

7. Customers not being aware when the business will reopen

With several businesses opening in stages and some remaining closed, it is difficult for consumers to track whether they can now buy things from the places they visited before the pandemic. A study also found that 39% of small business owners were frightened they would not make sufficient profits in deciding to reopen would be worthwhile.

 

However, the study presented that respondents began to apply many strategies to increase customer awareness and interest in the first month of reopening. Email marketing was the best-accepted choice, with 54% agreeing to use it. Another 43% would rely on sales or offer promotions to inform the public that their business is open again. Only 9% said they would not advertise their business in the first month after Lockdown. Analyzing your business, it may become evident that it is no longer feasible to offer your business the same way you did prior to the pandemic. For example, a husband-and-wife team that had a hair salon concluded. When their lease ran out in the middle of the COVID-19 pandemic, they chose to pivot by moving the business to the residence they own close to their primary home.

 

Furthermore, to cut hair on a lesser scale by only serving one or two people, the business took advantage of the property's natural beauty and created meditation and wellness spaces as well. Take this inspiration from their example and realize it is okay if your business model adapts to the occasion. If it does, make sure that your communications with customers indicating what is new, highlighting that you are open again and your services have grown, and the

location has changed, as an example.

How to combat Small Business changes

A number of the problems revealed here could have weighed strongly on your mind over the last couple of months. Instead, you are taking the recommended solutions and fine-tuning them to match your needs. Unfortunately, there is no universal solution for small businesses in these strange times, but now you have several ways from now on toward a brighter, more resilient future.

Contact us

We'll get back to you ASAP.

Bookkeeping

You can create any structure you want by using the same tools as in the regular workflow. Add buttons and forms or anything else you'd want.

Being experienced with an accounting background, we can offer a wide range of reliable and accurate bookkeeping services. A common question often asked is, "What exactly does a bookkeeper do? "The answer to this question is shown below for our services as specialist bookkeepers. We can,of course, modify our services to suit the needs of your business whether you need a few of these services or all.

·      Accounts Receivable*-Invoice preparation and follow-up with the client

·      Accounts Payable* - Suppliers' invoices are processed and paid when due.

·    Bank Reconciliations -Reconciling Bank and Credit Card accounts with daily bank feeds

·     GST Filing                        - Timely filing of Bi-Monthly or Six-Monthly returns

·     System Training               - Training is required whenever you choose new software. We provide free training.

·    Accounting Software conversions – With our expertise, we can switch your accounting information to XERO/MYOB

·        Payroll

·        Unlimited Email Support

*Note:- Accounts Receivable and Accounts Payable are closely monitored to ensure that your business has no issues with cashflow

Payroll Management

Business Pillars offers all-inclusive payroll services that help your business run efficiently. We are committed to being legally compliant. Our services are built to simplify payroll processes for small to medium-sized businesses throughout New Zealand.

PAYROLL processing made easy

We provide the most updated payroll solutions tailored-made that is affordable to your requirement. We are committed to taking care of all the work demanded, allowing you to focus your time and energy on more essential things you love to do.

Our payroll services are:

·        Employees pay, On-time payments including benefits, reimbursements, deductions, Weekly/Fortnightly/Monthly

·        Employee PAYE

·        Payday Filing   – Timely filing returns to IRD

·        Leave entitlements– Accruals for each type of leave

·        Leave Payment - As per Holiday Act 2003

·        KiwiSaver contributions

·        Maintaining payroll records – payments and documentation

GST Filing

Timely Processing

We ensure that we file all GST Tax returns two weeks before the due date. We keep our clients informed before we proceed. This ensures that the client is at ease.

·        GST Filing        - Timely filing of Bi-Monthly or Six-Monthly returns

Monthly / Quarterly Advisory

The clients are in a position to process their reports from the software chosen. Based on the service requested, additional reports are also given that are not available in their chosen software. These reports enable the client to make corrective business decisions. Business Pillars reaches out to clients who require more assistance.

Monthly Management Meetings

The primary purpose of a monthly management meeting is to get the business to grow. This is either done through a phone call, zoom, or meeting in person.

Cash flow Management

Managing cashflow is a significant responsibility faced by most small businesses. We reach out to businesses making it stress-free to ride on the highs and lows of the cash flow throughout the year.

We assist in producing a cashflow statement which is a financial statement that summarizes the amount of cash entering and leaving the business. The cashflow statement measures how well the business can manage its cash position, meaning how well the business can generate cash to pay its debt commitments and fund the day-to-day operating expenses.

Budget Forecasting

Small business budgeting and forecasting

We need to get some relevant numbers to know what the future will look like regarding a business. Budgeting and forecasting will help to support this vision. Business Pillars can work alongside you to understand these basics so you can build a financially sustainable business.

What is a budget?

The budget estimates how much money will come in and go out from your business over time (usually a year). Budgeting and forecasting normally benefit all businesses and first-time startups to see if they can afford to run the business and compensate for all their hard work with a good return for their initiative.

What are the main principles of having a budget

Budgets forecast the money-making possibility of a business. It will also highlight things like:

  • How much will it cost to startup?
  • How much money is needed to borrow?
  • When will be the breakeven point?
  • How much should the customers be charged?
  • How many staff are needed?

Monthly / Quarterly Advisory

The clients are in a position to process their reports from the software chosen. Based on the service requested, additional reports are also given that are not available in their chosen software. These reports enable the client to make corrective business decisions. Business Pillars reaches out to clients who require more assistance.

Job Management

Job Management is software that supports project managers and teams to complete client requests and projects efficiently. Most professionals depend upon this job tracking software which assists them in supervising multiple sections of a business. Business Pillars are here to assist in setting up this service to track income and expenses related to service jobs.

XERO and MYOB both have the capability for Job Tracking

These are the advantages:-

·        Create quotes immediately

·        Easily track jobs from quote to invoice

·        Schedule the jobs on the go

·        Get paid quicker