5 Things Your Business Needs To Stop Doing Now

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Right now, it’s all about survival and sustaining if you’re a business owner. Unemployment rates remain high, and the economy continues to feel the sting of coronavirus. In these uncertain times–a term almost as ubiquitous as “pandemic”–you may be feeling pretty unsettled, which can make you vulnerable to making detrimental business decisions.

We’re here to help by recommending five things your business needs to stop doing now.

1. Don’t Delay Seeking Financial Relief

Earlier, we wrote about all the financial relief programs provided by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Though many of its benefits expire by the end of July, the application process for The Payroll Protection Program (PPP) has been extended by five weeks. The Small Business Administration administers PPP, and by the end of June, it had approved 4.9 million loans comprising more than $520 billion.

2. Plan to Stop Paying Unneeded Rent

One of the happy accidents that has emerged during the pandemic is that the closure of offices and the switch to remote work created efficiencies. Many business owners have realized they can cut the unnecessary expenditure of their office space lease. According to Global Workplace Analytics, 56% of U.S. workers have jobs that are at least partially compatible with working remotely, while Gallup has reported that half of Americans who now work remotely want to continue even while restrictions are being lifted on businesses.

3. Don’t Put off Reductions in Force

It’s one of the toughest decisions to make as a business owner, but you may have to layoff or furlough staff. Difficult as it is, how you go about it can make a difference. Following the last recession, companies were able to hire back people, and if your budget allows, you may consider extending benefits for a short period following the separation

4. Avoid Letting Payments Slide

Staying liquid is key, which is why it’s critical to settle up any outstanding invoices. Now, it’s fine to give some leeway, as goodwill will be remembered, but you still need to get paid for your services. Try gentle email reminders, or pick up the phone–though it’s to request payment, people are still thirsting for connection during the pandemic. To avoid balances, you can request payment in full once you engage.

5. Don’t Rule Out Bankruptcy

While companies try to avoid bankruptcy, it can actually be the thing that saves your business. Chapter 11 bankruptcy may allow you to choose to liquidate assets or continue to operate, maintain ownership of assets, and be given the opportunity to create a reorganization plan to pay off creditors. Congress passed the Small Business Reorganization Act of 2019, which was temporarily amended by The CARES Act to help small businesses afford their reorganization plans.

The pandemic pivoting continues, but making the right business choices now can keep you business running today and for years to come.

To put 40+ years of combined experience in your corner, call (847) 440-5998 or contact us online today. We can begin with a complimentary, virtual consultation. Please follow us on Facebook and LinkedIn.