Step-By-Step Resource Guide to Protect Businesses Affected by COVID-19

Governments and the private sector are providing a wide range of supports for businesses all over the world affected by the COVID-19 pandemic,

How to Protect Your Business, a Step-By-Step Guide:

1. Start with financial triage.
2. Create an emergency plan.
3. Layoffs, furloughs, and terminations.
4. Educate your employees.
5. Communicate with your staff.
6. Reassess your cleaning policies.
7. Establish a work from home policy.
8. Take advantage of federal relief.
9. Update your marketing and sales procedures.

1. Start with financial triage.

The initial concern for most business owners affected by the Coronavirus is how to keep the bills paid for the next few months and how to retain staff? The first step in protecting your business from going under is to conduct financial triage.

Start by creating a detailed cash-flow budget with a list of all your fixed costs versus your variable costs. Fixed costs are those that are essential for the running of your business and must be paid whereas variable costs are expenses that change in proportion to your production output.

With fixed costs such as salaries, rent, utilities, and insurance, create a list of the most important ones and set aside funds based on when the amounts are due. With variable costs, cut those that are not directly involved in producing revenue and securing new business.

2. Create an emergency plan.

If you haven't done so already, it is time to create or update your emergency preparedness plan. An emergency plan should outline the steps you should take if an outbreak or natural disaster impacts your business. Moreover, the plan should define the steps taken to protect your employees and your business before disaster strikes.

3. Layoffs, furloughs, and terminations.

For many business owners, the most efficient and immediate way to cut costs is to reduce workforce numbers through furloughs, layoffs, and terminations. If you have employees, it is important to protect your talent when considering permanent layoffs or terminations. If you terminate an employee, you are responsible for paying out any benefits and will most likely not be able to hire that person again.

Instituting temporary layoffs is a sound alternative as your employees are entitled to unemployment benefits and you receive immediate financial relief from not paying salaries. You also have the option of extending your layoff period or recalling your employees when the business is financially stable.

Instituting furloughs is another option for business owners where employees are put on temporary leave without pay, but retain certain benefits such as health and life insurance. Furloughing employees gives you the freedom to immediately reduce your costs and recall your employees at any time.

4. Educate your employees.

As a business owner, it is your responsibility to educate your employees on the resources available in dealing with the effects of the Coronavirus in the workplace. The government has provided financial aid to assist employees who are affected by layoffs and reduced working hours.

• Paid sick leave is mandatory in 12 states. If your business has a mandatory paid leave policy or an existing leave policy, employees may be eligible for paid time off.
• The Families First Coronavirus Response Act provisions up to 80 hours of paid sick or family leave for reasons relating to the Coronavirus.
• Employees with student loans can benefit from a 60-day suspension of interest on all federally-funded student loans.
• The U.S. Treasury Department is working to allow individuals negatively affected by the Coronavirus to defer their taxes from the original April 15th deadline to July 15th.
• The U.S. Department of Labour gave states the flexibility to amend their unemployment benefits laws to minimize the effects of the Coronavirus on the economy. In some cases, employees may be eligible for increased benefits in cases of temporary unemployment.
• The White House has considered a payroll tax cut that would positively impact employees through to to the end of the year. If successful, it would mean that certain workers would see an increase in their pay. A considered alternative to the tax cut would be a cash payment for individuals of up to $1200.00 per person.

5. Communicate with your staff.

If you are implementing changes to your business, it is essential to communicate updates to your staff as soon as possible. No one likes being left out of the loop, especially when it relates to cost-cutting. Distribute regular mails on Coronavirus updates as well as steps are taken to ensure the continued functioning of the business and the safety of employees at work.

6. Reassess your cleaning policies.

In the wake of the Coronavirus outbreak, many businesses are updating their cleaning policies. This is the time to implement or update your cleaning policy to protect your employees and your business.

• Increase the frequency of your cleaning procedures.
• Increase ventilation rates.
• Encourage employees to sanitize their work stations and wash their hands.
• Ensure sick employees do not come to work.
• Stock up on approved Coronavirus disinfectants.

7. Establish a Work from Home Policy.

If it is possible and financially sound, consider establishing a work from home policy. This will allow you to keep your staff on active work duty while in self-quarantine. Your policy should include guidelines for temporary remote work, employee eligibility, and procedures/guidelines.

8. Take Advantage of Federal Relief.

The Coronavirus has already made a huge impact on the U.S. economy and lawmakers are scrambling to pass legislation to help small businesses weather the storm.

If your business is struggling to make ends meet due to the outbreak of the Coronavirus, you may benefit from the following federal relief programs.

• Low-interest federal disaster loans.
• Federal income tax deferment.
• Employer tax credits.

9. Update your Marketing and Sales procedures.

If you are still open for business, make sure your customers are aware and update them on any changes to your sales procedures. When business is slow, it is essential that you make it easy for your customers to purchase your goods or services. Updating your marketing strategy is the key to finding new business and retaining lucrative contracts.

• Implement a weekly newsletter to communicate with your customers.
• Focus on providing excellent service to your existing customers.
• Use social media to increase your virtual presence in the industry.
• Use this opportunity to explore new sales trends.
• Consider new ways to deliver your product or service.

Business Resources & Guidance

https://www.uschamber.com/sites/default/files/023595_comm_corona_virus_smallbiz_loan_final.pdf

https://www.nj.gov/labor/employer-services/business/covid.shtml

https://www.betterteam.com/us-covid-19-business-resources

https://smallbusinessbc.ca/article/resources-for-small-businesses-affected-by-coronavirus-covid-19/