With vaccinations already rolling and the economy recovering, some businesses are already reopening. In the second quarter of 2021, Yelp recorded150,940 new business openings. Most of these are restaurants and food and retail businesses. And a majority mainly came from the South, such as Mississippi, Alabama, Georgia, Kentucky, and Louisiana.
This is a contributed post and do not necessarily reflect the opinions of Meet The Harris Family.
Yelp attributed the spike to the increase in vaccinated people. With the lifting of restrictions, consumers are now more interested in pre-pandemic activities like dining in and shopping.
There Are a Few Struggles
While it is good news to the economy, some companies still struggle to get back on their feet. According to the Momentive Small Business Survey,50% of business owners have a hard time employing workers. According to data, there are one million jobs available in the market. However, employees are demanding higher wages coming from layoffs and remote work setup.
Aside from workforce issues, small businesses are struggling due to limited capital. Shutting down operations for almost a year left them with negative revenues, despite having fixed costs like property rent and supply contracts. This makes it hard for businesses to fill in the job vacancies due to the demand for higher wages.
The challenge now for businesses is to go back to operations by cutting costs and a limited workforce. Here are some things you might want to consider if you are planning to reopen your business:
Sell Your Commercial Property
Now that the new normal is going remote and digital, decide if you’re going to need your office or commercial space. Can your business thrive online? Can your staff continue to work remotely? If yes, you might want to let go of your office. This will lessen your rent and overhead costs. However, it’s never that easy to let go of your property. You’ll need the proper guidance from the right professional to help you through this process. That said, you need to consult a lawyer about commercial property conveyancing.
Aside from the legalities and paperwork required for signing, make sure you won’t compromise quality service and productivity if you choose to operate without a physical space. If you think you can’t let go of your space, consider choosing a smaller one for cheaper rent. Reuse other rooms for other purposes to maximize space. You won’t need a considerable space anymore if a hybrid work setup becomes the new normal.
Go Digital
Going digital doesn’t mean cutting costs on human resources; it means cutting your overhead expenses. Study your workflow and find specific work processes your staff can complete online. If you’re in a retail business, invest in an online app where people can shop for your items. This is more efficient than having a physical store. You won’t need a big team to manage your space. You will also cut costs on electricity. Invest in an online customer service portal instead of having a customer service booth for client concerns. Instead of sending paper bills, notify them via email instead. You will not only trim down your expenses; your business is also being environment-friendly.
Negotiate Your Prices
The whole world knows how the pandemic has affected small businesses like yours. Your bank, your suppliers, and your clients will understand. Consider negotiating your terms and contracts with suppliers. If you could lower the price or extend your deadlines, then much better. Try asking for discounts from your suppliers. Talk to the property owner and ask for rent discounts or payment extensions. If you’re on a mortgage loan, apply for forbearance. Set a pandemic rate for wages if you’re hiring new employees. Offer other benefits instead which can compensate for their reduced salary.
Review Your Workforce
Given the new normal of business operations, do you need as many people? The easiest way to cut costs is to cut your workforce. But you do not want to be removing employees in the middle of a health crisis. Consider limiting work or reducing work hours. This way, you don’t have to lay off people. You’re just reducing pay and their working hours instead.
Talk to your people one by one. Negotiate a lower pandemic rate given the financial struggles of the company. It works both ways. You get to keep them, and they get to continue their employment.
No one knows when this pandemic will end. One thing is for sure, though. The economy will recover. All industries will soon reopen, and people will get back their jobs. You have to start preparing your recovery plan as you reopen your business. You may not earn as much as before, but it will surely improve over time. With trust and a little risk here and there, you will be back on your feet, and your business will deliver soon enough.
