As the coronavirus continues to spread, small businesses everywhere are feeling the effects. For many of them, the virus threatens more than their health. The CDC has advised employees and consumers alike to avoid contact with other people and limit time spent outside the house. The resulting slump in foot traffic has caused lost profits for business owners — and some say they’ve had to lay off employees due to the economic effects of the virus.
There’s always a risk that cash will leave a company’s bank account faster than it gets deposited, and that risk has only increased due to the current pandemic. Companies of all sizes have the potential to lapse on payroll. What’s more, very few organizations have the financial resources to preserve deep pockets.
So, what happens if you can’t make payroll next week? What happens if it takes weeks or even months to bounce back from the COVID-19 hit? Whatever you do, don’t stress out. You need to be able to think clearly and tactically to find potential solutions. Here are some recommendations to guide you:
Expect to miss payroll, even when you’re stable
In business, there are so many variables that you can’t control. As a leader and business owner, you need to confront these challenges head-on and believe that you are brave enough to face them. If you’re facing a financial emergency, stress has the potential to overwhelm and destabilize you.
As Stoic philosophers say, if you expect the worst—whether or not the worst actually happens—you’ll be ready to confront it.
“With anticipation, we have time to raise defenses, or even avoid them entirely,” writes DailyStoic.com, in an article about Stoic practices applied to business. “We’re ready to be driven off course because we’ve plotted a way back. We can resist going to pieces if things didn’t go as planned. With anticipation, we can endure.”
Let’s say that you don’t have a backup plan by the time you’re reading this article. You can still take steps to stabilize your operations and remedy the consequences. Here are some steps that you can take: – Read more
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