Closing an establishment or deciding to close your business during the pandemic is not a simple decision, and it involves considering factors that can help it survive. Just some guidance, words of encouragement, and official directives to help you get through this.
1. The crucial query: Should I shut down the company?
The state of the global and Indian business environments today was unpredictable. Not even tiny company owners, or even prominent economists, could have guessed that in the spring of 2020, the ongoing epidemic would force so many businesses to close their doors for good. All businesses are impacted, however, some more than others. Through this unusual scenario, there is no straightforward advice; instead, there are words of encouragement, direction, and official guidelines that are constantly changing and updated.
2. The most difficult choice
In our lifetime, it is almost unheard of for a firm to be forced to shut its doors. Companies were forced to halt trade immediately, which led to widespread fear, financial worries, and uncertainty. Companies are discovering that their clientele has vanished and plummeted. There is no anticipated forward load. Refunds are required when reservations are canceled.
There is now virtually little hope for the future, making the present a desperate moment.
This post will attempt to provide some assistance at the most challenging periods without trying to sugarcoat the actual circumstances.
Many company owners will be faced with the choice to shut their establishment if they have no revenue stream and no future load. Though that could be the only choice available, let's think through some alternatives first.
3. Temporarily halt operations
Given that the majority of business spaces are closed and that many companies don't engage with customers, it could be better to consider our business practices rather than shutting down right away. Is this the right moment to rework the business plan and implement the strategy shift we have been considering for years? Can we halt regular operations and reorganize to take advantage of any future chances when they present themselves? Have we had enough reserves to get us through this bad patch? What kind of government assistance is offered?
4. Return to the operating minimum pairing
We may be able to completely scale down our business operations throughout the crisis. That depends on your industry, but there are indications of patronage from consumers who are prepared to lend a struggling firm a hand by postponing reservations for a year (connected to tourism). Requesting deposits to be kept as a show of support for a failing business is another indication of the customer's concern and respect for the goods and services provided.
To cut back your operation, try the following:
• Cease any non-essential payments;
• Extend terms of payment for any things you may be paying;
• Communicate with your bank for assistance.
• If you have staff, ask for their assistance;
• Verify all government support, which is subject to change daily, and request assistance (see below).
When the financial crisis struck the business sector in 2008, many companies collapsed, but many others pared down their activities to a minimum, eked out an existence, and emerged from the ordeal in a good position to relaunch their operations.
5. Redesign the business
Is it time for you to re-engineer your business? Is becoming digital a good idea or even possible?
The present situation is inspiring incredible ingenuity. Restaurants started offering meal delivery services and became takeaways. For the first time, several supermarkets are now offering a simple but effective dial-in or online service. Organizers of children's parties use technology to interact with their younger audience, turning them into virtual performers.
Perhaps now is the time to consider what is best for you, your company, and your future. Check them out and connect with the multitude of resources offered by ProMunim of India’s advisors, online assistance, and webinars and tutorials!
Take this opportunity to consider prospects to operate in a new and perhaps sustainable manner. After this present crisis, our economy and society will be very altered. That can provide you with the ideal chance.
6. So, should we shut down the business?
No matter how hopeful we try to be, there comes a point when the choice to shut the business is taken. This challenging choice must be handled as well as possible by all parties involved. If the choice to shut down is taken, we must make sure that there is no blame placed on anybody for the present state of affairs.
The advice that follows comes from experience and might be useful to you if you decide to shut down.
Talk to each other
Once you have decided to close, don't hold back on your choice. You may be confident that being open and honest will benefit you.
Workers: If you have employees, you must tell them of your choices on the timing of closures as well as pay and salary packages. Everyone will be nervous about your choice to shut down and maybe even angry. You must acknowledge their concerns and take all reasonable steps to assist staff members positively. Refer to the most recent government guidelines and assistance initiatives. A lot of stuff is in place to help folks, and it's constantly evolving.
Your network: In addition to clients and suppliers, you will have your network of relatives, friends, and business associates. Have honest and open communication with them. Since there is no one to blame in this erratic situation, you must share your choice so that you can cope with the reality of it.
Expert assistance: share your choice with your network of professionals. Make sure you communicate with your accountant and legal counsel to ensure that the company is closed in a manner that complies with regulations and may be financially advantageous in terms of asset disposal and liability management. This relationship is crucial since their advice, encouragement, and knowledge will get you through this challenging assignment.
Your state of mind and body
You and your family will be going through a trying and anxious period. Maintaining your health requires getting as much fresh air as possible and exercising (by the rules set out by the government). Currently, many people stay home and spend some time tending to their gardens to keep them pleasantly busy outdoors and finish the household tasks that are often neglected.
Today, as they were ready to build their nest, I saw bluebirds coming and leaving from the garden's bird box. That gave me some perspective on the situation for today.
Even in the best of circumstances, managing a company may have an impact on our mental health. Worrying about unpaid invoices and client feedback is a daily occurrence for entrepreneurs. Shutting a company may hurt our mental health. Recognize any symptoms and get assistance. It is rather simple to write about, yet it may be quite challenging to identify and address at times. Family and friends who will be watching out for you should be listened to. Try to pay attention to your sleeping habits, your degree of irritability, if you've been drinking too much, and any potential withdrawal. Seeking expert assistance and support is crucial and will have a significant impact.
Make use of essential knowledge, counsel, and assistance.
We have never seen the levels of government backing, direction, and involvement for companies during a worldwide disaster. You have a support system that is growing every day as you manage your firm.
Everyone is affected by the current worldwide crises. Hopefully, these remarks will provide some consolation and direction during this trying time until the end of the tunnel is in sight. and light will be present.