Knowing that roughly 50% of the population is fully vaccinated gives us hope. It means that we are finally rounding the curb. But sadly, we cannot say the same thing when it comes to the economy. Economists predict that the recession will last for a few more years.
This prediction is disheartening, especially since we are already struggling with our finances. The future seems even bleaker for entrepreneurs who face several dilemmas on multiple fronts. They do not only have to manage the new economic reality. But they must also solve the labor shortage problem.
It seems that the future of US small businesses is bleak. But yours do not have to be. With ingenuity and determination, you can beat the odds. You can come up on top of the pile. Here is how:
The Market
You may already have an existing base of patrons. But are there still enough of them to keep your company afloat? Early this year, NBC News reported that many Americans sought cheaper homes. Ask yourself if your business can still make a profit with this new reality.
It creates the need to carry out a feasibility study. Why not just rely on the reported market trends? Unfortunately, it is not enough to depend on this information because they talk about national (sometimes global) market trends.
For example, you read that Covid-19 forced people to do their shopping online. But this is a global phenomenon. It will not help you rebuild your company. Of course, you should capitalize on this. But it is the icing on top.
How about the US government statistics? Can I not use that? Yes, they can be helpful. But they will only show you demographics. They do not give you an insight into what makes the local consumer tick.
On the other hand, a business consultant can design the survey to fit your business model. The questions in this study should help you identify the path that you will take. Is there a need for you to diversify? Or is it still profitable to re-open your company?
The Brand
Most think that the brand is the name of the company or merchandise. It encompasses everything that the entity stands for. It does not necessarily mean that you will alter your business name. Carry out a few changes that make your business stick to your customers’ minds.
Let us say that after assessing the local market, you are re-opening your auto repair shop. You originally built your business to serve young executives and wives, so you fix sedans and family vans. The feasibility study points out that their kids are old enough to drive vehicles. It also states that these youngsters like to go joyriding on lifted trucks. In this case, you must alter your company to cater to the new clientele.
The Tools
Last year, CNBC reported the number of small businesses that closed because of the pandemic. Some of them were temporary. Sadly, others were permanent. You probably halted operations because of the lockdown mandate.
This inactivity may have caused rust to set in your machinery. It necessitates the purchase of new tools. If you are afraid that the government’s financial aid is not enough to fund this type of investment, fear not! There are alternatives.
Let us continue with the previous example of an auto repair shop. In this case, you must purchase an air compressor and other heavy pieces of machinery. You can choose to do an equipment financing scheme. It will allow you to acquire those assets without having to spend money.
Equipment leasing is another option. This alternative is an excellent choice for pieces of machinery that are not necessary to the business operation. For example, you run a restaurant. You can choose the equipment financing scheme for the industrial-scale stove and freezer.
Let us say that you want to tap into the e-commerce market. You think that you need a delivery van. Before you purchase this, remember that customers can still get your food through GrubHub or Uber Eats. In this case, you choose the equipment leasing option. This alternative allows you to use the van without the heavy financial burden.
Experts say that people will still feel the economic downturn years after the pandemic. Forbes reported that roughly 70 thousand businesses permanently closed because of the pandemic. But this does not have to be your story. The steps enumerated here will help you keep your company afloat. If correctly applied, they can even help you expand your business empire.