The coronavirus pandemic upended the lives of all Americans, including millions of business owners, within a matter of days. With the crisis now entering its third month, you may have barely had a chance to catch your breath and adapt to the new reality.
According to a recent article published in Forbes Magazine, however, accepting reality as it stands today is one of the most important things you can do for the future health of your business. That doesn’t mean you need to read every worst-case scenario about economic recovery after the pandemic. It just means you should remain informed by seeking a variety of expert opinions and outlining several possible scenarios for the immediate future. This includes paying attention to your investing decisions.
Review Your Business Plan Often and Revise if Necessary
With a situation as rapidly evolving as the coronavirus pandemic, what works for your business this month may be impractical next month. That’s why it’s so important to stay abreast of daily developments and adjust your business plan accordingly. It’s important to take a realistic approach and create plans for the following potential scenarios:
- How would your business handle disruptions in the supply chain that could prevent it from getting the materials it needs?
- Does your company have cash reserves if it goes without revenue for several months?
- How will your company handle customers who suddenly become slow-paying through no fault of their own?
- What would happen if you or someone else in a leadership position had a health emergency and couldn’t return to work for an indefinite time?
Hope for the best and plan for the worst is sound advice in all areas of life, but especially for business owners dealing with the pandemic crisis.
This is also the ideal time to cultivate your business relationships, although it might take some creative thinking if it’s not currently possible to meet in person. We recommend reaching out to others in the same industry as your business and supporting each other as much as possible. You might even ask how other business owners are managing investing decisions among all the other financial decisions they must make for their company.
Look Past Challenges to See New Opportunities
When any crisis occurs, it’s natural for people to panic and see only the negative about the situation. You might be surprised at the difference it can make to change your mindset to one that looks for possibilities instead. For example, your company may produce a product that few people can use right now. Rather than scrap it and lose money, employ some innovative thinking to tweak the product to something that’s immediately relevant. Maybe you even have resources that you could lease to other businesses to help them while keeping your own company’s income flowing.
Try Not to Let Business Investments Slide
It can be difficult to think of investing for the future when outside circumstances suddenly throw your business into survival mode. Even so, many financial experts have stated that it can be the ideal time to do so because many stock prices have fallen so low.
We invite you to schedule an appointment with Aura Wealth Advisors to determine if now is a good time to start investing on behalf of your business or whether you need to change your investing strategy due to current events. With the many demands you must juggle in keeping your business financially solvent, we hope that creating or changing your investment strategy will bring you greater peace of mind.