There’s no doubt surrounding the fact that the COVID-19 pandemic has caused, and will continue to cause, economic hardships for the business community at large. Small businesses, in particular, are facing a fair amount of uncertainty as stay-at-home orders and social distancing shutter physical locations and force businesses owners to work from home — if even, at all, possible.
For some, this may pose minimal risk — we can still send emails, connect with clients, plan future events, and other work responsibilities from home. But, most—if not all—of us have had to postpone or cancel our spring and possibly summer events, leaving countless business owners to figure out what to do when the cash flow dries up.
This situation isn’t permanent by any means — we will see the other side of this, but the truth of the matter is that we don’t know when that will be. Even so, there might well be a recession on the other side of this, so it’s important for all business owners to brace themselves for the trying months—or years—ahead. Here are a few considerations to keep in mind as you prepare to future-proof your company for the uncertainties that lie ahead.
Seek immediate relief as needed
If you’re currently trying to make ends meet for the next month of two, planning ahead may seem like a fool’s game. Before you can look at the fall, winter, and into 2021, you need to first start by protecting your assets now. Due to the pandemic crisis, there are many options for low-interest funding that can help you through this immediate threat.
The federal government is offering the Payment Protection Program (PPP) and Economic Injury Disaster Relief (EIDL) loans that are low-interest and can be forgiven if certain parameters are met. There are also non-profit organizations providing relief funding for small businesses. Connect with your local chamber of commerce to see what options are available for your business.
Revisit your insurance policies
Of course, it’s always best to be proactive in planning for a crisis than reactive, but if you haven’t looked at your insurance policies in some time, now is better than never. Ensure that you have liability, business, and workman’s compensation insurance to keep your business safe in case anything bad happens. Use some of your now-forced “free time” to call your insurance company and make sure everything is up to snuff and you’re covered for everything you want.
Try something new
It’s always a risk to have 100% of your revenue coming from one direction; if one thing goes wrong, your whole business could suffer as a result. Instead, consider diversifying your revenue streams when possible. Employing multiple streams of income ensures that your business can remain solvent even if one of your top products or services falls victim to the economy. For example, if you typically serve luxury clients, consider offering a more budget-friendly package in case the economy forces consumers to limit their spending.
Lean on your network
During hard times, we need as much help and support as we can get. In the business world, there’s no better place to get this from your existing network. Take some time to check in with creative partners, attend networking events, and join industry associations. When you can, support your fellow event professionals by sending referrals their way and, of course, accept help graciously when offered to you.
There is no telling what the next months and years could bring. Whether we face a full-blown recession or not, it’s always best practice to ensure your business is solvent and in shape for any hard times that may lie ahead.
Kevin Dennis is the editor of WeddingIQ and the owner of Fantasy Sound Event Services, a full-service event company based in Livermore, California. Dennis is the current international president for WIPA.