Lessons Small Businesses Can Learn from the Pandemic
/by Andy Logue, President and COO, Republic bank
Although some things have returned to normal, the impact of the COVID-19 pandemic on our daily lives is still significant. For small business owners in particular, the pandemic has caused unprecedented operational disruption and financial challenges. It’s during difficult times though, that the most important lessons are learned. So what can small businesses take away from these past 20 months?
Size and Scale Make it Easier to Pivot.
As the saying goes, “Necessity is the mother of invention.” Due to their size and the ability to scale ideas, the small businesses that were able to quickly react to the challenges brought about by the pandemic, get creative and pivot their operations not only stayed afloat, but prospered. The way many were able to engage staff and find new ways to bring value to customers was powerful and should be used as inspiration moving forward.
Manage Debts to the Best of Your Ability.
In any downturn cycle, managing debts is critical. Controlling costs and expenses appropriately when times are tough helps to ensure small businesses are set up for future success once things turn back around. Building up an emergency fund is essential, and any organization should have at least two months of payroll in the bank as a cushion.
Know the Value of Your Employees.
Despite operational disruptions or outright closures that significantly impacted revenue streams, small businesses that had appropriate funds saved – and even those that didn’t – continued to pay employees because they believed it was the right thing to do. Even though it wasn’t easy, many small business owners realized that doing right by their employees would encourage productivity and loyalty. Customers notice this, too, and some organizations earned customers for life because of the way they treated employees during the pandemic.
Even amidst the chaos, it’s also important that employees feel heard and appreciated. Small businesses learned that showing empathy – even in small ways – contributes greatly to how an employee feels about the work that they’re doing, in addition to their overall personal wellness.
Having Reliable Partners is Key.
It’s important for small business owners to surround themselves with trusted partners they can turn to when they need help or when times get tough. Lawyers, insurance brokers and accountants can bring immense value and help entrepreneurs ensure their businesses run smoothly.
Banking partners also proved critical during the pandemic when many small businesses were trying to apply for a Paycheck Protection Program (PPP) loan through the Small Business Administration. The small businesses who had good relationships with their banks were able get the assistance they needed to complete and submit loan applications. At Republic Bank, we worked with thousands of our small business customers – and thousands more non-customers, which set us apart from many of our competitors – to obtain PPP loans, which were needed lifelines for many during the pandemic.
Small businesses have been through a lot over the past 20 months. And despite the valuable lessons learned, it was not easy. Following Small Business Saturday on November 27, it’s important that we all commit ourselves to supporting local to ensure that the small businesses we love continue to thrive and our local economy prospers. We appreciate all those who chose to shop local on Small Business Saturday and encourage you to also do so the other 364 days a year.
If you would like to learn more about Republic Bank’s banking offerings, please contact Matt Skilton at mskilton@myrepublicbank.com.