How has the Covid-19 pandemic affected businesses?
There is not a single industry that has not been affected by the ongoing COVID-19 pandemic. With the resulting recession now underway and the threat of another spike in cases looming in the winter ahead, many new and smaller businesses are at an even greater risk of failing during this difficult time. The worry of closing up shop, however, isn’t unique to small and medium enterprises; 2020 has even seen the closure of big-name brands across the country.
But it’s not all doom and gloom. Some experts argue that a recession can be a good time to start a business. While economic uncertainty is never a desirable situation, some of the world’s biggest businesses started during economically turbulent times – there is hope!
Read on to discover how you can help ensure your business survives the pandemic-recession double whammy.
How can my business survive?
Here are our top tips for business owners:
Review – Is your business plan recession-proof? Have you reviewed your contracts? Your business plan and business contracts are your business’s most important documents. In order to build your business sustainably you will need to assess where you are and review where you are going. With some experts warning that the pandemic may go on for another 2 or 3 years before a vaccine is made available, it will be a long and slow road to recovery. It is therefore important that your business plan, contracts and business processes reflect this reality.
Be realistic – Prepare for and consider the long-term effects of lost revenue and foot traffic due to public health concerns and mass unemployment.
Be adaptable – Businesses, especially small businesses, need to be agile and flexible to adapt and ensure survivability. This includes making difficult decisions quickly regarding strategizing, restructuring and developing new products or services.
Think digital – Whilst the trend toward online purchasing is nothing new, it is self-evident that the pandemic has exacerbated the problems facing brick and mortar shops. If you are thinking about moving your trade online, it is important you take into consideration the relevant legal requirements with setting up an e-commerce business.
Believe in your business – Things may feel bleak but continuing to look for opportunities and investing in your business, including getting the right legal advice, can help ensure your business’s survival.
How can Pure Business Law help?
The pandemic may be a global problem, but at Pure Business Law we recognise that each person and business is different. As a specialist business law firm, we are committed to creating legal solutions that best fit your particular needs. Whether you are an emerging entrepreneur or seasoned businessperson, we believe that your business is worth fighting for.
Our team of specialist experienced business and commercial law solicitors can help. Whether it is negotiating contracts, raising capital for your business or helping you set up and manage your business online, we are here to offer honest, clear and cost-effective legal advice.