Mar 21, 2020

4 Complications Your Small Business May Face Due to Coronavirus

Due to the fast-changing nature of COVID-19 programs and SBA COVID-19 programs, posts may become quickly out of date. Please check our COVID-19 section for the most up-to-date information on rates, terms, and other info for PPP loans/EIDLs. 

As COVID-19 continues to have a ripple effect worldwide, small businesses must brave new challenges to stay in business. Some of these issues include sick employees, demand shock, and travel and supply chain disruptions. 

To keep your small business ahead of the virus, we’ve gathered a few tips to push through this challenging time. 

1. Sick Employees

As a business owner, your greatest asset is the health of your employees. Unfortunately, 90% of employees admit that they still go to work even when they’re ill. Sick employees can not only affect your bottom line, but they also put customers and other employees at risk of catching their illness.

2. Decreased Demand 

Most small businesses can expect a significant drop in consumer demand. As more customers practice social distancing and self-isolation, fewer individuals will be in crowded places like malls, restaurants, and theaters. As brick-and-mortar stores face slower foot traffic, many businesses are temporarily closing down. 

3. Travel Restrictions

Foreign visitors typically spend $256 billion on US travel and tourism a year. However, with the recent travel ban to the US from 28 European countries and massive vacation cancellations, small businesses must deal with the fallout. Businesses in the hotel and hospitality industry are especially at risk to suffer losses.

4. Supply Chain Disruptions

Since many businesses primarily rely on China to manufacture parts, supply chain restrictions will continue to be a major concern. According to a recent report by the Institute of Supply Chain Management, 75% of businesses have experienced supply chain disruption due to COVID-19. As companies scramble to find new suppliers, expect long delays to secure products and parts.

How To Cope With Coronavirus Complications

With the state of small businesses in flux, businesses must evolve to meet current challenges. Here are a few ways your business can adapt to keep the lights on. 

 

4 Complications Your Small Business May Face Due to Coronavirus

About the author

Zoe Weisner
Zoe Weisner
Zoe Weisner is a burgeoning freelance writer based in the San Francisco Bay Area. A former product marketer, Zoe writes about finance and small business-related topics. When she’s not hunched over a keyboard, she enjoys exploring the peninsula and binge-watching Korean dramas with her pint-sized poodle. She has a BA in Philosophy from Smith College.

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