We’re in the biggest economic crisis of a lifetime, and maybe even centuries. Of course this is temporary. Pandemics always end, if not well. There will, then, be an eventual recovery.

But the economic cost of this pandemic is going to be substantial. Not just because of the decline in GDP we were told about on Friday but because what that statistic does not show is the loss of capital in many small businesses. Their chances of successfully reopening at their previous scale when the pandemic is over are, in many cases exceptionally limited.

This is because of the haemorrhaging of cash that has happened during the course of the pandemic and because of the additional costs that they will incur when they do reopen as a result of social distancing and other measures.

And so to thrive – and not just survive – after the pandemic will require many small businesses to adapt to this new normal. What does this mean and what should they be planning NOW?

This is my five point checklist:

1. Rebuild your foundations: successful businesses are based on solid foundations, one of which is a sound capital base. Try to grow too soon or too fast and cash will dry up. Just like if you are buying a house, you need some equity or long term debt (which doesn’t include a bounce-back loan). Start preparing your plan for where this is going to come from.
2. Let your imagination save you: your imagination can look beyond the recession and see new possibilities. It can help you see yourself differently. It can contemplate a different life where this recession gets you out of your comfort zone and helps you grow into the person you always knew you could be deep down — the person you’d forgotten about. The harsh truths you face in a recession can define you in new and exciting ways when you use your imagination. Write down who you are. Write down what you’re afraid of. Write down what excites you. Write down who you could become. Write down what you dream of. Most importantly, write down what action you can take during this recession to become the person you just imagined you could be. There will never be a better time.
3. Work on yourself: this is a time to learn new skills. The skills that will be needed in the new normal era. What are you good at and love to do, but have never had time? What safe options have you chosen over being bold? Start the business you have always said you’d start ‘one day’? Acquire the skills you need to ‘be your own boss’ such as marketing, selling, accounting, budgeting, managing people etc. Design your future.
4. Identify your new ‘ideal customer’: Buying habits will change either by imposition or choice. We have become used to going out less, social distancing, caring for others and saving. Look at the amount of consumer debt that has been repaid. Some of these changes will slow and some will reverse, but we aren’t going back to the way things were. This presents a huge opportunity for businesses that can identify the needs and wants of their new ‘ideal customer’ who wants to work from home, have commodities (like food and essential supplies) delivered, communicate online and remotely and be more cautious. The lack of preparedness for the pandemic by both government and households was startling: we won’t let that happen again.
5. Build a second income stream: not relying on one source of income, business or product gives you options and helps you diversify the risk associated with the time you invest in your work hours. There is no rule that says you can only have one job (even though some employers demand it) or one place of work. Thousands of people have found they can work just as effectively – and in some cases more efficiently – from home. All that time spend commuting wasted!

Some business owners will continue to complain and whinge about what the pandemic has done to their business and blame the government for not doing enough. But there is only one person who can build your future. Don’t wait for the cavalry – they’re not coming.

Time to get started

Stay safe.

Noel Guilford