How to Rebuild Your Business After the Pandemic

Prepping your business for life following the pandemic

Many businesses across different fields and industries felt the economic devastation due to the coronavirus pandemic; however, one of the priorities for many company directors and business owners is to rebuild.

Having this in mind, here are some ways to rebuild your business after the pandemic, with careful planning you could start making profits as you used to before the pandemic, and thrive once again over the long-term.

Your cash flow is key

One of the keys to rebuild your business after the pandemic is to have a positive cash flow. Your business is likely to go bankrupt if it doesn’t have the money to pay bills when due, especially in this period of economic uncertainty and fragility.

You will get useful insights on any significant shortfalls if you forecast your financial needs over the coming months; doing this will give you more time to combat the lack of funds. You can improve cash flow when you apply for additional funding or strengthen your debt collection procedures.

Make sure you know your financial figures like the back of your hand with a carefully thought out cash-flow forecast.

Use government assistance where applicable

Researching areas where you could benefit from government aid, if available, is worth your time as it could help you to rebuild your business. For instance, you can take advantage of the Time to Pay (TTP) arrangement, which can give you more time to pay your tax arrears as you rebuild your working capital reserves simultaneously.

Think about additional finance options

You can consider a type of alternative finance that can influence your sales ledger’s value if sales are becoming better and your business offers credit. Invoice discounting and invoice factoring, which are common funding types for different sectors, can provide regular working capital injections every month.

Usually, funds are released within 24 hours after invoices have been offered, and you can decide to outsource the aspect of credit control if you are having trouble collecting your debts. Basically, invoice finance is not a strict but flexible funding arrangement that can grow as sales improve and rebuild your business.

There are other types of alternative finance aside from invoice finance you can rely on depending on your business operations. Some of the alternatives that may be more appropriate for you include supply chain finance, equity-based crowdfunding, and asset-based funding, among others.

Build effective communication

Effective communication is also key. Business owners should ask themselves whether they’re doing enough to build relationships with customers and suppliers, and learn about their commercial and operational challenges. If the business is facing its own cashflow difficulties, has it reached out to lenders or approached creditors to renegotiate payment terms?

Seek advice from experts

You can identify areas of concern in your business when you seek professional advice, for instance, improving IT systems to enhance timely management of information or minimizing costs. You could also get advice on your marketing strategy as the whole market place has changed.

Getting insights from an experienced/qualified adviser is priceless, especially when your business has suffered from the COVID pandemic.

Also, if your business is insolvent or likely to be soon then seeking professional assistance is vital. They can assist with negotiations with creditors, either formal or informal, and having a professional present during negotiations gives your creditors confidence that you want to repay your debts.

Ensure you adapt to the new trading environment

Technology has really played important roles during this pandemic, and it can be beneficial to help rebuild your business. You can change how you operate your business; for instance, if you have a bricks and mortar store you can switch to offering your services or services online if possible.

Increase or diversify product and service ranges

Look at increasing your product/service range. Very few businesses are built around a single product. It’s nearly impossible to sustain a business with such a narrow focus. The more products you have to sell, the more likely it is the business will be successful.

But building multiple streams of revenue is about more than just selling different products — it’s also often about marketing from different platforms, to different customers, or creating passive income. Potential revenue streams that could be added to your product line include a variety of ideas, such as:

• Complementary products, such as tools that are required in order to use your main product
• Consulting services, appealing directly to the people who use your product
• Installation and maintenance services that facilitate the use of your product

Think of it in percentages. If your main product makes up 80 percent of your revenue, then if it gets hit by an economic downturn, you’ve lost 80 percent of your overall income. If you have ten different revenue streams, however, and you lose one, you still have 90 percent coming in. Those are two extremes to illustrate how it can work, but how you put it into practice depends on you.

There’s really no limit on the different types of revenue that can be added to your main source. It all depends on the type of business you run, the need in the market, and your own imagination.

Get tailored advice on rebuilding your business today

You can reach us at Forbes Burton for more information and professional advice on how you can rebuild your business following the COVID-19 pandemic. We offer same-day advisory sessions for free to assess your situation on time and recommend the best and suitable option your business needs. Call us for free advice on 0800 975 0380 or email [email protected]