Have a contingency plan
All businesses should have a contingency plan they can fall back on when it’s needed. In fact, companies should have a variety of contingency plans available to ensure they’re ready for any eventuality.
If you don’t have an existing backup plan, there’s no need to panic. Take the time to consider your options and create workable plans that you can put into place. Remember – the economic impact of things are not yet known so create more than one backup plan so that you’re prepared for a variety of outcomes.
Check your insurance policies
Businesses with interruption insurance will benefit from having a continuous source of income, depending on the terms of their agreement. Even if you’re unable to operate, a comprehensive business interruption insurance policy could give you the temporary respite you need to overcome trading suspensions.
If you don’t remember taking out a specific policy, be sure to double-check. Many financial products aimed at businesses include some form of interruption insurance, so you may have a policy that you’re unaware of. If so, study the terms in detail and talk to the provider to determine what your rights are. Combined with financial support and potential tax breaks from the government, this injection of cash could enable your business to weather difficult times ahead.
Additional funding
For many businesses, additional funding will be required. If you’re unable to trade or if a recession prevents customers from spending, your revenue could be severely reduced. However, economic peaks and troughs aren’t uncommon. Providing your business can weather the temporary storm, there is a good chance you will recover and enjoy more profitable times to come.
In the meantime, securing additional funding could be your best option. Fortunately, there are various ways to do this. You may want to discuss your existing business loan terms with your provider to determine whether an increase is possible. Alternatively, you may consider obtaining personal loans and not taking a salary for your company for a limited period of time. Instead, you may decide to open your business up for investment in return for giving up a share of the equity.
With a range of options on the table, don’t feel rushed into making a decision too quickly. While it’s easy to panic when trading grinds to a halt, major business decisions always require careful consideration.
Safeguarding Your Business
A significant number of business owners are already facing tough decisions due to the economic and practical impact of the outbreak. However, there is plenty of support, guidance, and advice available. By tapping into these resources, you can access the financial, practical and moral support you need to help you overcome the inevitable challenges your business will face.