It’s difficult to predict how the next six months will unfold, but we do know there will be obstacles to overcome. It is now more important than ever to have a plan in place to chart a new path forward, weather any storms ahead and thrive in a post-pandemic world. Download Scotiabank’s new small business report: “The New Path to Impact: Facing the Future with Cautious Optimism”
5 Steps on the Path to Recovery
1. Stay Resilient:
Focusing on ways to sustain your business and stimulate sales. While economic recovery and consumer spending are trending in the right direction now, we are still far from a full recovery. That means, staying the course and remaining resilient. Continue to manage expenses, explore new revenue streams, and use digital channels to reach new and existing customers. Be prepared to scale up when the time is right.
2. Use Available Resources:
If you anticipate continued financial difficulties in the short term, such as reduced revenue and consumer spending and/or slow overall growth, explore the support programs available to see if you qualify. These include government programs such as the Canada Emergency Wage Subsidy, the new Black Entrepreneurship Program, Bank programs like The Scotiabank Women Initiative or connecting with business associations like the Canadian Federation of Independent Business. There are options for every size and stage of business growth.
3. Build up your A-Team:
Having a strong relationship with your financial advisor is important for any small business, but especially to navigate the ongoing impact of the pandemic. A good advisor can look at your entire portfolio to see where you might be able to free up capital or better manage cashflow. Setup quarterly meetings and empower them to focus on your finances, so you can focus on running your business. Explore a wide range of advice options by visiting the new ScotiaAdvice+ Centre.
4. Double Down on Digital:
The top priority for small business owners in the coming months is to increase sales through additional channels. Allowing customers to access products and/or services online can help small businesses attract a broad audience while providing a more convenient shopping experience. Embracing digital solutions also means, looking at how you can:
- Automate customer payments through your bank or a variety of payment solutions available.
- Leverage social media to generate awareness and offers to your target audience.
- Use technology to make everyday business tasks easier, like automating supplier payments and real-time wire tracking.
5. Be Ready to Pivot:
With the changes this year has brought, it’s important to review your business model. Ask yourself: Does it still work in this environment? Where can I pivot to alternate channels like online or curbside pickup? Finding alternative opportunities can save a business. That also extends beyond just reviewing the business model to:
- Evaluate the business’ cash flow and working capital position to make sure your debt is structured properly and there’s sufficient working capital.
- Be prepared with supplies, such as bulk ordering PPE for employees, and potentially customers in advance.
- Address operating costs to balance against any sustained sales and revenue declines.
Download Scotiabank’s new small business report: “The New Path to Impact: Facing the Future with Cautious Optimism”