If you are an entrepreneur or an aspiring entrepreneur, you are aware that you need to reconsider your business growth plan since the pandemic. The COVID-19 crisis has completely transformed the global economy. As a result, business communities all around the world need to learn new rules and adapt rapidly to survive. While governmental bodies, landlords, and other suppliers have agreed to offer financial peace of mind to most companies during the pandemic, monetary responsibilities are now coming back for entrepreneurs.
Whether you are a newcomer on the market or running your own business already, the post-pandemic environment focuses on money transfer for recovery. Commercial landlords are not ready to delay rent any longer. Grants are becoming more difficult to find and apply for. And suppliers need to recover their pandemic losses. The bottom line: Businesses that are either trying to launch their presence or struggling to recover from the covid repercussions are likely to face high costs.
Additionally, governmental bodies and commercial networks will also be considering strategies to rebuild their pre-pandemic funds. For small companies and new entrepreneurs, the post-pandemic market is a world of new challenges and fluctuations. For anyone who has been working with a business plan based on your knowledge and expectations before COVID-19, it’s now time to find new approaches to unlock the funding you need. Commercial loans are not an option for most small businesses. Therefore, you need to think outside the box and be pragmatic about the supplies available to your organization.
Evaluate long-term strategies
There is no miracle solution. Now is the right time to evaluate your business plan. Even a good and solid business plan that was designed before the pandemic or before measuring the repercussion of the pandemic will need evaluating again. As businesses are facing a time of insecurities, fluctuations, and uncertainties, it’s essential to build a strategy that will supply long-term investment and financing to your business project. Therefore, the first rule of the strategy is to let go of your emotional attachments. Everybody has irrational dislikes, fears, doubts, or preferences that can influence your investment and financial decisions. However, when your business is at stake,m these emotions could waste you precious time.
Instead, you want to find a reasoned and logical fact to support your decisions. As tempting as it is to check the latest strategic trends, hot tips are a no-no. Researching each solution and suggestion takes time, but it’ll avoid falling into unpleasant traps. As an entrepreneur, you will face difficult decisions based on whether you want to buy or rent your equipment. It is a financial decision that will affect the company’s future; hence it’s worth sitting back at the planning desk once more to compare your options.
Unlock free cash with your home
Can you home be the key to finance your business growth throughout the pandemic recovery? If you are a homeowner, you may want to look into options to utilize your property asset for your business goals. Thankfully, there is more than one way to turn your house into a funding solution.
First of all, homeowners who are still paying off their mortgage can consider ways to refinance home loan for financial gains. To refinance your loan, you will need to take two factors into consideration. Firstly, your financial health has improved, increasing your credit score. It will affect your access to better mortgage deals. Secondly, there are deals available to cover the remaining of your payment that can save you enough money to justify the cost of a mortgage transfer. You will need to consider the interest rate, the amount to be repaid, and the eligibility criteria. As a rule of thumb, experts recommend aiming for mortgages with under two per cent interest rate to free up cash.
If refinancing isn’t an option, you can turn the physical property into an income-generating device. Both homeowners and tenants can rent out a room or storage space in their homes. As a tenant, you will need to check that your landlord is happy with subletting options. Solutions such as Airbnb enable you to let a room inside your home. Rooms fitted with a small kitchen area, bathroom and private entrance will present little Covid risks. Airbnb may be more cautious about sharing bathroom and living areas with a guest for the foreseeable future. You can also offer storage space in your garage or basement on platforms such as Facebook Market or Craigslist. Finally, as a homeowner living in a large property, you can convert some of your rooms into a B&B area, providing accommodation and breakfast to your guests.
Consider new funding for businesses
Pandemic funding isn’t available in most areas anymore. However, some companies are offering advanced post-pandemic options that could support your business growth. Small banks and nonprofit lenders have been looking into business support and economic recovery in North America. Funding solutions exist in the US and Canada for eligible companies. Criteria of eligibility will vary from a lender to another. As the process lets you build a personal connection with a lender, businesses have the opportunity to introduce their strategies, USPs, and growth potential personally. While it is a low-cost financing solution, it can help companies tackle urgent expenses as they (re)build their presence.
Crowdfunding platforms
Crowdfunding platforms have always been part of the funding of startups and innovative solutions. But when it comes to the pandemic, crowdfunding platforms could help some businesses survive or thrive through the post-pandemic economy. Platforms enable businesses to share their content and reach out to their audience. While small companies and solo entrepreneurs are running out of options to secure their growth, public investors could be willing to step in. For business launch, crowdfunding provides a source of financing and creates a network of potential partners and customers who are already buying into your business idea (as they are willing to pay to help you). Additionally, the funding campaign is a lot more straightforward than applying for a grant or a loan. As such, entrepreneurs are in the driving seat and can accelerate positive activities.
Traditional sources of funding are scarce during the post-pandemic, economic recovery. Small businesses and entrepreneurs need to be creative to protect their brands and support growth.
