As we move deeper and deeper into the worldwide pandemic, it’s more apparent than ever that the novel virus changed the world – especially the business world.
Covid-19 has caused mass shutdowns around the globe, prompting businesses to get creative. Not doing so has led to business shutting down, laying off employees, or financial hardship as they prepare for what is yet to come. The last seven months have been an eye-opener for many business owners around the world.
Even though Covid-19 isn’t finished, we can already see lessons learned from the first wave. Unfortunately, we sometimes need to learn the lessons the hard way for reality to sink in.
These are four lessons that many business owners have learned since the start of the pandemic.
Remote Working Can Work
Although not a surprise to some organizations who already utilize this, for many businesses, this is still a new concept – remote working. As companies were forced to close their physical doors, they continued working from the safety of their home.
If companies continue to allow remote working even when the pandemic is over, they may find that it opens up a unique form of resumes that could be perfect for the job. Understanding and allowing remote working helps enforce the essential balance between work and personal, which not every employee had the luxury of achieving.
Life Insurance Isn’t a Bad Idea
Do you have life insurance? If not, it may be a good time to find a policy. Life insurance for business owners isn’t just about having a death benefit for their loved ones. It also offers an opportunity to insure the business and the employees. If one of your top employees suddenly passed away, would you be able to manage?
Take some time to shop for different life insurance policies. Research whole life insurance and term life insurance to compare the difference.
Have a Risk Management Plan in Place
Although we can’t necessarily plan for a worldwide pandemic, businesses can prepare for potential hardships they will likely face. At some point in the life of an organization, it will go through challenging years. Whether it be financially due to the economy or employees leaving, there are many reasons why a business will go through some intense times.
Your business plan should also include a risk management plan. It’s better to overprepare for the worst than having to react as you go.
Your Budget Matters
When businesses shut down for an extended period of time, finances become a top priority. Will you be able to maintain all of your expenses without going under?
The Covid-19 shutdown has taught us the importance of having reserve cash or an emergency fund. This lesson doesn’t stop at businesses. It can extend to basically anyone. You should have enough money to last you and your family for several months if your household lost its income.
The same goes for your business. Having enough money in a reserved account for a crisis will ensure you can keep paying your bills until your revenue stream picks up again.
Remember these lessons above when the time comes for the world returns to a new normal. Take the last several months as a learning experience so that the business world is prepared for a possible next time.