Rebuilding your business

Though you have safety measures in place, and perhaps even a functioning emergency fund, financial setbacks can sideline your small business. Whether because of a business misstep or an unforeseen occurrence that has interfered with your workflow, setbacks can add financial stress to your business in all sorts of ways.

The latest (and unavoidable) example of an unforeseen occurrence was the COVID-19 pandemic, which brought a great deal of financial stress to small businesses. There is no doubt that planning for a pandemic like this is difficult to do. Even with financial buffers in place, navigating such tumultuous waters can be tricky.

However, just because your small business has experienced a financial hardship—whether related to the pandemic or otherwise— it does not mean you are out of options. Though rebuilding may sound like a daunting task, it is not an endeavor you need to tackle alone.

Starting the process of rebuilding your business is a lot like originally starting your business, but you have the advantage of experience this time around.  

Assess the financial damage

Whatever happened that hindered your small business, it is fair to say that it was unplanned. Financial setbacks come in all shapes and sizes, and if they significantly impact your business workflow it can be difficult to bounce back. To prevent them from happening again, you need to assess where exactly the damage occurred. Was your business impacted as a whole? Was a particular aspect not operating as it should?

Find out where your weak spots are and take this knowledge back to the drawing board. Analyze your business plan and assess what worked and what didn’t. Hold on to those things that worked well and focus your areas of weakness. Ask yourself, what safety measures do you wish you had in place?

Fine tune the plan

Rather than thinking of this as creating an entirely new business plan (unless necessary), think of it as modifying the current plan. The setback, while significant, is now a learning experience that you can apply to beef up your current plan.  

Some of these changes might be procedural shifts, while others might be cost-saving efforts. For instance, is your business one in which some of your employees can work from home? This could save you the overhead of rent and office furniture. While this may not have been a previous consideration, the times have demonstrated that remote employees can be efficient for all parties.

Additionally, consider other areas where you can shift your business budget. Marketing, for example, might be one of these areas. When you are approaching your business model for the second time around, do not just start lumping things back in as they were before. Everything must be considered a bit differently to make sure it still works the way you intend, or to make sure it is still a necessary expense.

Consider whether you’ll need funding

As you reassess your business plan, it is possible that you will need some sort of funding, like a business loan or a line of credit, to help you get your feet back on the ground.

Speaking with your financial institution about what makes sense for you and for your business is a good approach. Having a financial partner in your corner can lift some of the burden from your shoulders, and you can return to work knowing that you have financial professionals in your corner.

Don’t wait for “the new normal”

There has been a lot of talk about waiting until things get back to normal. However, the pandemic has changed the business landscape for good. Do not start rebuilding your business as if nothing changed, or as if you’re expecting everything to return to how you remember.

Think outside the box and consider the implications of what has transpired, not just for your business, but society as a whole. Adjust your new business approach based on how you have seen the world change. And this is an important note for small business leaders in general. While this pandemic has been an extreme example, it is common for business landscapes to change periodically. A test of your business and of your business plan is how you are able to adapt to those changes.

If your business plan was not flexible enough before, then improve it this time around. Allow your business the flexibility to shift with the changing tides. And by keeping this thinking in mind, you do not have to wait until something goes terribly wrong before tending to it. As you rebuild your business and notice that an aspect of your plan is not functioning to the level you thought it would, then go ahead and tweak it.

Sticking to a plan even though you know it could be improved is a framework for eventual disaster. Get ahead of these things by being less rigid with your business plan so you can adapt when you need to.

Remember why you started the business to begin with

Building a business is hard work, and rebuilding it might seem even more tiring. But think back to why you built your business in the first place. Think of what you were hoping to accomplish and how those early days felt.

Recalling these times will serve as a motivation booster. Times have changed, and will continue to do so, but that just means your business needs to change with them. And once you have your new plan in place and are passionate about moving your small business forward, you will do so.

Let Associated Bank help you rebuild your business.

Call 800-270-7725

Monday–Friday, 8 a.m.–5 p.m.

 

Sources:

“6 Ways To Rebuild Your Small Business After COVID-19,” Forbes, April 2020

https://www.forbes.com/sites/advisor/2020/04/30/6-ways-to-rebuild-your-small-business-after-covid-19/?sh=11628df216cc

“Why you should rebuild your business as often as possible,” Venture Beat, March 2019

https://venturebeat.com/2019/03/23/why-you-should-rebuild-your-business-as-often-as-possible/

“4 Tips for Rebuilding Your Business After the Pandemic,” SCORE, July 2020

https://newyorkcity.score.org/blog/4-tips-rebuilding-your-business-after-pandemic