From surviving to thriving and how to rebuild your business in the post-COVID19 world. Small business owners are eager to rebuild as the country emerges from the COVID-19 pandemic. However, it’s not as simple as hanging an “OPEN” sign in the window and welcoming old customers back. Low on funds and faced with an uncertain future, small business owners need to be strategic if they’re going to achieve success in 2021.
Assessing the Pandemic’s Financial Impact
Few businesses emerged from the pandemic unscathed. But do you know exactly how your 2020 numbers compare to the years prior?
- Before you can evaluate business performance, you need to gather data. Compile financial statements including a balance sheet, income statement, and cash flow statement to assess your company’s financial well-being.
- Look beyond gross sales and use financial ratios to measure your business’s health. Examining net profit margin, cash flow to debt, and sales per employee ratios provide a clearer picture of your business’s performance.
- Next, project future performance with financial projections. Revenue, expense, and cash flow forecasts provide the information business owners need to create a sensible budget.
From Surviving to Thriving: Rebuilding Your Business After COVID-19
Where to Find Small Business Funding in 2021
Accessing capital may prove to be business owners’ biggest challenge in 2021. Here’s what to know about small business funding prospects.
- Paycheck Protection Program loans remain highly competitive, but businesses can take advantage of other loans and grants.
- Small businesses struggling to qualify through large commercial banks should try local community banks, peer-to-peer lending sites, and direct online lenders. These lenders tend to offer easier loan approval.
- Reducing expenses will be a key part of balancing the budget in 2021. Businesses can reduce expenses by downsizing office space in favor of telework, outsourcing to freelance and contract labor, and phasing out underperforming legacy systems.
- Don’t forget to take advantage of tax credits and perks targeted toward small businesses. This includes tax credits signed into law under coronavirus relief bills.
Budget-Friendly Tips for Rebuilding Your Business
How can small business owners stretch their dollars in 2021? These are the need-to-know strategies for rebuilding on a budget.
- Digital marketing belongs in every small business’s toolkit this year. Not only is it affordable compared to traditional marketing, but with people spending more time online than ever, digital marketing’s reach has never been greater.
- Unfortunately, digital marketing’s affordability leads some businesses to dive in without a plan. Conduct market research surveys to understand where your target audience spends time online and what they want from your brand.
- If your business is reopening with limited capacity, reach out to loyal customers first. This boosts revenue by targeting the highest spenders and provides an opportunity to get feedback from your top customers.
Recovering from the COVID-19 pandemic will require a combination of financial strategy and savvy marketing. Not only do small businesses need to balance the budget after a challenging year, but they’re also faced with rebuilding brand awareness and loyalty in 2021. If you need affordable marketing strategies for your business’s recovery, contact the digital marketing experts at Incognito Worldwide to learn what we can do for your small business, from services to automated tools, to consulting. We can help you build out KPI and financial model charts, investor decks, and one-sheets. We engage in market research and then develop marketing plans. Ask us for examples.
Just getting started, check out our Stage I business setup guide article.