It is without a doubt that the business community has had a fair share of the challenges due to the coronavirus pandemic that has spanned the whole world in the wrong direction. According to a survey conducted by numerous tech companies, more than 30 percent of small and mid-sized businesses have closed down their operations in the last three months since the announcement of the strict containment measures. While many businesses have cited a number of reasons to explain why they face imminent closure, financial struggles have come out as the major cause. Increased operational costs, reduced sales, and reduced employee productivity have compounded the challenges. This post delves into some of these challenges and discusses how Don Forman Nissan has come out strongly to help businesses that are on the verge of closure recover and get back to their feet.
As the business community tries to adjust after a partial reopening of the economy, small businesses are far from recovery. In fact, many businesses are still trying to find a bearing following the lockdown that was announced a few days since the novel virus heat the world. There are many challenges that small businesses have and continue to brace even as they try to come back to business. Here are some of the challenges that the COVID-19 precipitated:
Reduced sales: While businesses have been resilient by remaining in the production process, the demand side of the market has shrunk significantly affecting the sales of a majority of the small businesses. Consequently, these businesses are now struggling with reduced revenue bases and the inability to finance their daily obligations. The reduced demand for products has been attributed to the low purchasing power of the consumers owing to lack of access to incomes by households due to layoffs and closure of their sources of money.
Limited access to Capital
All businesses have certainly lost their grip on finances. As businesses closed shop or drastically reduced their operations, their revenue base was affected. They had challenges financing their supplies and staying afloat. As businesses were forced to work remotely, a majority of them found it challenging to mobilize resources to finance their IT infrastructure to comply with the health protocols.
According to a survey by Facebook, two-thirds of businesses that closed shop hope to reopen, and those that have said they won’t open their doors cite severe damage to their finances and inability to pay their rent and other bills. In a separate study, 60% of the small businesses say they are grappling with their finances. Some of the biggest concerns have been challenges in paying salaries to their workers and bills.
Balancing between work and caring for their families
The other biggest challenge small businesses are struggling with is creating a balance between work and social life. Over 50% of the surveyed businesses revealed that executives and owners had challenges caring for their families while at the same time attending to their businesses. Those interviewed said they feared bringing the virus home. The inevitable social distance created by the COVID-19 has brought overwhelming emotional suffering to households. This has affected employees a great deal.
In order to address their financial woes, businesses are now turning to financial institutions for financial help. According to a survey report released in August, half of the small businesses applied for government support to get capital. Large tech companies, including Google and Facebook, have also come in strongly to provide support to small and middle-sized entrepreneurs struggling to meet their expenses during the pandemic.
How Don Forman Nissan IS Helping Small Businesses Facing Imminent Closure Recover
In recognizing the challenges small-sized businesses and start-ups go through amidst the pandemic, Don Forman United Nissan kicked in to provide support to not only help these businesses revamp their operation but also help the nation’s economy to rebound. The global coronavirus pandemic continues to affect millions of people and thousands of businesses across the sectors. At the frontline of the recovery of the economy has been Don Forman, a passionate philanthropist that has proven to be a force to reckon. Amidst the challenges, many businesses are now breathing a sigh of relief courtesy of Don Forman Las Vegas. Don is currently working with like-minded partners to help fund businesses to help them recover from the tough economic situation.