Disasters and economic crises can make it difficult for a business to retain enough capital to stay afloat. Coronavirus has many businesses facing issues making payroll, maintaining inventory, and paying rent. Businesses can prepare by exploring their capital access options so that they have what they need to stay in business.
The COVID-19 outbreak has many employees and potential customers socially distancing and working from home when possible. It is vital that your business has enough working employees to keep the business running while staying safe.
Inventory and Supply Chain Shortfalls
As this public health crisis unfolds, it is wise to ensure that your business has the supplies and inventory it needs to last for a prolonged period. Prepare to stock up on inventory or diversify your resources in case a supplier cannot meet demand during this time.
Facility Remediation/Clean-up Costs
With public health concerns at an all-time high, keeping your facilities clean and disinfected is more important than ever. Both your staff and customers must be protected from potential transmission of the COVID-19 virus, so it may be necessary to increase cleaning efforts in both frequency and intensity. Be sure to check cleaning supplies and maintenance or cleaning contracts to confirm that they can meet increased demand.
Insurance Coverage Issues
Does your business have interruption insurance? Contact your insurance company to review your policy to get a better idea of exactly what is and is not covered in the event of unexpected and extended incidents that may halt business.
Changing Market Demand
With businesses temporarily closing and many consumers committing to social distancing, the market demanding is changing drastically for many businesses. In many locations, there are restrictions in place that limit customer access to many types of businesses. Due to concerns about exposure to Coronavirus, you may need a plan in place to navigate changes in demand and access.
While marketing may not be the first priority during a public health and economic crisis, it is important to let customers know the status of your business. Be transparent in your current operations, protective measures in place to prevent staff and customers coming into contact with Coronavirus, and how customers can safely patronize your business. Special deals and promotions may help to retain more customers during this time.
Meet with your staff to prepare for the best and worst-case scenarios during the COVID-19 outbreak. It is vital that your business is prepared and the staff is on the same page whether the incident worsens or improves. Consider hypothetical scenarios and prepare for how your business, management, and staff will respond. It is important to be prepared for all situations, as businesses do not know the duration of time that the Coronavirus emergency will continue. Check out FEMA’s emergency planning exercises
for ideas on how to best prepare.