Having and maintaining a business in the time of the coronavirus pandemic is the most challenging thing owners have come across in this lifetime.
The numbers aren’t quite encouraging to look at these days, but there are ways to get the small businesses ashore through the crises. Sometimes this involves also having to fill for bankruptcy, but there’s a long way to go and a lot of means to protect the business until that point.
Let’s go through the most important and likely ones:
Create a plan.
Creating an emergency plan, or accessing a previously existing one, is a must right now. It will help you and the company outline the steps to take if an event such a pandemic has an impact on the business. A plan will also underline the measures to take to protect the employees.
Securing liquidity may be an important part of this plan, and should be done as early as possible.
Communicate with all the employees.
Speaking of the employees, communication with them is one of the most important things to do when there is a crisis such as this. Health and job concerns are on the top of the list, as insecurity is roaming in different industries. And is equally important to keep posted managers and other workers alike.
There are lots of ways to have the employees updated and assured – and companies use emails most often.
Have them work from home.
Wherever the case, allowing the employees to work from home would hugely benefit both them and the company. Either is a new or an already established procedure, people will adapt fast – if they haven’t done it yet.
In most cases, the work equipment can be brought home from the office or job place, and other technologies, like phones or reliable Wi-Fi, are within a reach in most of the cities.
Sign up for relief, bailouts, benefits, whatever the case.
Governments in many countries are passing legislation to help small businesses and individuals to get over the crisis. Either bailouts, federal relief, or other forms of helping, you should strongly consider applying to, when needed. That means disaster loans, tax credit, tax deferment.
There are maybe millions of applications worldwide for such relief programs, so the system must be working.
Try to avoid bankruptcy.
While we all want to take small and decisive steps to improve the situation, keep in mind that avoiding bankruptcy is a target for many companies. There are several ways to keep the business afloat, like renegotiate contracts and reduce staff costs, collect outstanding cash, improve productivity, and also try to look pas the pandemic. While many of these advices may sound well on the paper, they are valuable steps to take trying to avoid getting in the next phase.
If needed, fill for bankruptcy.
OK, for some businesses getting to bankruptcy may be the final solution. In this case, it is vital to know how to file bankruptcy. There are some steps to take when filling for bankruptcy. If all is done properly, there will be light at the end of the tunnel.
After collecting the documents, then follows analyzing debts and determining eligibility, deciding whether to redeem, reaffirm or surrender the assets, filling the bankruptcy forms, taking credit counseling courses, meeting with the bankruptcy case trustee and, finally, receiving a discharge from debts.
What to know and when to fill for bankruptcy.
To know when to call for this decision is not something quite definite, but rather it depends from each case to another. But if you think is the right moment, just call a lawyer and have the process started.
Just keep in mind that filling for bankruptcy doesn’t mean closing the business, but the contrary. It is not the end of the financial life, so a decision like this you have to make it count. There is life after the coronavirus pandemic crisis both inside and outside the business.