Better does not mean good. However, May turned out to be a better month than had been predicted. In March, CNBC reported that 49% of companies were considering layoffs, more than a third of them had initiated hiring freezes. There were estimates that unemployment could reach 32% (during The Great Depression it rose to 25%). As many as 47 million jobs were expected to be lost.
May gave us some hope.
Unexpectedly, the unemployment rate dropped to 13.3% and 2.7 million jobs were created. Just how big is this? Since the Bureau of Labor Statistics began tracking this data in 1939, May stands as the largest monthly gain in its history.
We’re looking to the future with cautious optimism. As the economy begins to reopen gains momentum, here are some tips for how to manage your small business through the remainder of the pandemic.
Although May showed that we were moving in the right direction, our unemployment rate is still very high. It’s still higher than it was during The Great Recession in 2008.
Economists highlight that there have been increases in industries such as construction, healthcare, and education. Regardless of the market bounces back and for what reason, it is out of your control.
Maybe the only thing you have full control over is your (and your business’s) reaction to the situation.
What works for you and your business today might differ from week to week, from day to day.
There is a reason why Steve Jobs only wore turtlenecks and, notoriously, ate dinner on his floor without furniture. President Obama claimed that he’d only wear black or grey suits.
Both people figured they only had so much energy to expend each day. And they didn’t want to waste it on choosing furniture or what color suit to wear.
Instead of worrying about which way the economy is going to swing, use your time and energy wisely. Figure out what elements of your business are completely under your control. Exert your influence in these areas. Don’t squander away your focus worrying about aspects of the economy you are completely powerless to control.
For example, the things you can control are your operating expenses and making the most of the traffic you see coming to your business (online).
Another option is looking to see how you can add revenue by applying for relief packages.
The Coronavirus Aid, Relief, and Economic Security Act (CARES) Act is a robust $2.2 trillion relief package with many subcategories.
One of which is the Paycheck Protection Program (PPP). Not only can you receive money to keep paying your employees, but if you use it properly, then you will not have to pay the loan back. For additional information on how to not pay this loan back, you can read about it here.
Create a New Plan
There’s an Einstein quote where he says, “Insanity is doing the same thing over and over and expecting different results.”
If your revenue stream is no longer viable, find a new one. Granted, this is not only significantly easier to say than do, but it doesn’t necessarily apply to everyone.
Gyms throughout the US have offered their equipment to their customers if they keep their memberships active. Restaurants now offer curbside pickup. Wholesale distributors who used to sell their food to other businesses (casinos, for example), decided to start shipping their food straight to consumers.
Take Care of One Another
Rogue, a fitness equipment manufacturer, saw a great increase in sales due to people needing to workout from home. However, they’ve used their resources to create Personal Protection Equipment (PPE): to date, they’ve made 603,556 face masks and 465,644 face shields.
As important as it is to think inward, we also need to think of others. Everyone has been affected by this pandemic to varying degrees. Not only is helping out your neighbor the right thing to do, it makes for good business. Your kindness, given to someone in need, is not easily forgotten. Imagine how you want to be remembered when this is over and be that person now.
With PayWow, we will go out of our way to make sure you get the care and help you deserve. Like you, we’ve had to shift how (and where) we do business, but our goals and commitment to our customers remains unchanged.